WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC 
10 October 2011 
 (11-4939) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 
of the GATT 1994 and Article 25 of the Agreement 
on Subsidies and Countervailing Measures 
 
EUROPEAN UNION 
 
  The following notification, dated 14 July 2011, is being circulated at the request of the 
Delegation of the European Union.
1 
  
_______________ 
  
                                                      
1 On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Community (done at Lisbon, 13 December 2007) entered into force.  
On 29 November 2009, the WTO recei ved a Verbal Note (WT/L/779) from the Council of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/220/EEC 
Page 2 
 
 
  EUROPEAN UNION  
 
TABLE OF CONTENTS 
 
  Page 
 
I.  INTRODUCTION .................................................................................................................. .. 4 
A.  S
TRUCTURE OF NOTIFICATION  .................................................................................................... 4  
B.  PERIOD COVERED  ....................................................................................................................... 4  
C.  PRESENTATION OF NOTIFICATION  .............................................................................................. 4  
D.  STATUS OF SUBSIDIES  ................................................................................................................. 4  
II.  EUROPEAN UNION SUBSIDIES .......................................................................................... 4  
III. THE EUROPEAN UNION'S STRUCTURAL ACTIONS ................................................... 5  
A.  EUROPEAN REGIONAL DEVELOPMENT FUND ............................................................................. 6  
IV.  COMMON AGRICULTURAL  POLICY (CAP) ................................................................... 9  
A.  GENERAL OBSERVATIONS  .......................................................................................................... 9  
1.  Health Check of the CAP ....................................................................................................... .. 9 
2.  Financing the CAP ............................................................................................................. ..... 11 
3.  Information on the Internet ...................................................................................................  12 
B.  EUROPEAN AGRICULTURAL GUARANTEE FUND (EAGF) ......................................................... 12  
C.  MEASURES FINANCED THROUGH THE EAGF  ("FIRST PILLAR " OF THE CAP) ......................... 13  
1.  Export refunds ................................................................................................................ ........ 13 
2.  Interventions in agricultural markets per sector ................................................................. 14  
3.  Direct aids ................................................................................................................... ............. 31  
D.  EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD) .............................. 43  
E.  MEASURES FINANCED BY THE EUROPEAN AGRICULTURAL FUND FOR RURAL 
DEVELOPMENT ("SECOND PILLAR " OF THE CAP) ................................................................... 45  
1.  Policy framework .............................................................................................................. ...... 45 
2.  Rural development measures ................................................................................................. 46  
F.  SAPARD/IPARD .................................................................................................................. .... 50 
G.  MEASURES FINANCED BY SAPARD/IPARD ........................................................................... 51  
1.  The Sapard pre-accession instrument — Completion of the programme (2000 to 
2006) ......................................................................................................................... ................ 51  
2.  Instrument for Pre-accession Assistan ce for Rural Development (IPARD) ...................... 52  
V.  INDUSTRY ...................................................................................................................... ........ 52 
A.  COMMUNITY FRAMEWORK PROGRAMMES IN THE FIELD OF RESEARCH  .................................. 52  
B.  RESEARCH ON COAL AND STEEL  .............................................................................................. 57   G/SCM/N/220/EEC 
 Page 3 
 
 
  VI.  ENERGY SECTOR ................................................................................................................ 58 
A.  EUROPEAN ENERGY RECOVERY PROGRAMME  ......................................................................... 58  
B.  TRANS EUROPEAN NETWORK - ENERGY (TEN-E)  PROGRAMME  ............................................. 59  
VII. OTHER PROGRAMMES ..................................................................................................... 61  
A.  EUROPEAN FISHERIES FUND (EFF) ........................................................................................... 61  
B.  COMMON ORGANISATION OF MARKETS IN FISHERY AND AQUACULTURE PRODUCTS  ........... 63  
 G/SCM/N/220/EEC 
Page 4 
 
 
  I. INTRODUCTION 
A. STRUCTURE OF NOTIFICATION  
 Subsidies in the European Union are granted bot h at Union level i.e. out of the Union budget, 
and by Member States. 
 
 In view of this, the notification is divided into  two parts.  This first part of the notification 
deals with subsidies granted by th e European Union and general info rmation on aid granted within the 
Union's territory.  The second part of this notifica tion, circulated as addenda to this notification, 
covers subsidies granted by individual Member States.  The Member States' notifications cover 
subsidies granted at both national and sub-national level. 
 B. P
ERIOD COVERED  
As far as possible, this notification rela tes to subsidies granted during the period 2009 
and 2010 and to subsidy programmes which are currently in  force, and provides statistical information 
at least up to the end of 2010 .   
 
C. PRESENTATION OF NOTIFICATION  
The information provided in this notification includes, as far as possibl e, all the elements 
required by Article 25.3 of the Subsidies Agreem ent and in almost all cases follows the presentation 
required by the subsidies questionnaire.  In a few ca ses, the presentation is different to that specified 
in the questionnaire, but all the re quired elements are still included. 
 
D. STATUS OF SUBSIDIES  
In preparing this notification, the EU has at tempted to achieve the maximum transparency 
with regard to aid and support measures granted within  its territory.  The fact that such aid has been 
notified does not, in accordance with Article 25.7 of  the Subsidies Agreement, prejudge its legal 
status under GATT 1994 or this Agreement, nor do es it prejudge its effects under the Agreement or 
the nature of the measure itself.  In view of the diverse nature of many of the programmes notified, it 
may be that only part of a programme's funding in volves a subsidy element, which may or may not be 
specific.  Consequently, the appearance of a program me in this notification does not in any way imply 
that the whole or part of its expenditure amounts to a specific subsidy.  II. EUROPEAN UNION SUBSIDIES 
(a) Subsidies granted out of the European Union budget 
 The two largest areas of expenditure were ag riculture and structural operations.  Another 
notable area of expenditure is research.  All these ar e described in more detail in this part of the 
notification.  
(b) State aid in the Member States 
 The European Commission is responsible for exam ining all state aid granted within the EU in 
order to determine its conformity with Article 107 of the EU Treaty.  Member States are required to 
notify all aid schemes to the Commission, which may d ecide either not to raise any objection or open 
an investigation procedure.  If the aid scheme is ultimately found not to conform to Article 107, the 
Commission issues a negative decision which prevents th e aid being granted.  If the Member State has 
already granted such aid, the Commiss ion can order the aid to be repaid.  G/SCM/N/220/EEC 
 Page 5 
 
 
   
 Details of Member States' aid schemes can be found in addenda to  this notification. 
 
III. THE EUROPEAN UNION'S STRUCTURAL ACTIONS 
 The EU's structural actions (comprising the Structural Funds and the Cohesion Fund) are 
intended to strengthen the economic and social coh esion of the Union, in particular by reducing 
disparities between the levels of development of the various regions and the backwardness of the 
least-favoured regions.  The legislative provisions have been adopted for the period 2007-13.  The 
current legislative package is co mposed of the following elements: 
 
(1) A general regulation which defines comm on rules, applicable to the European 
Regional Development Fund (ERDF), European Social Fund (ESF) and the Cohesion 
Fund (CF).  Based on the principle of management shared between the Union, the 
Member States and the regions, this regulation offers a new programming process as well as new norms for financially managing, controlling and evaluating the projects.  
The cohesion policy is reorganised around three new priority objectives:  
convergence, regional competitiveness and employment, and European territorial 
cooperation. 
 
(2) A regulation for each of the sources of  financing (European Regional Development 
Fund, European Social Fund, Cohesion Fund and the Instrument for Pre-Accession 
Assistance (IPA). 
 
(3) A new regulation creating the possibility to create a cross-border authority to carry 
out the cooperation programmes. 
 
 The budgetary commitments in 2009 and 2010 amounted to:  
 
 2009 2010 
Fund Budget available Execution  Budget available Execution 
ERDF 28,114,164,424 28,114,164,424 28,143,044,795 28,143,044,795
CF 9,273,340,740 9,273,340,740 10,166,854,793 10,166,854,793
ESF 10,180,502,792 10,180,502,792 10,817,493,528 10,817,493,528
 
 The technical assistance for Commission activ ities (for all ERDF, CF & IPA) is excluded 
from the calculations. 
 
 These structural actions are required to conform strictly to the EU's rules on the provision of state aid (Articles 87-89 of the EU Treaty). 
 
 The structural actions are notified in the spir it of transparency.  The aid involved is largely 
devoted to the least-developed areas of the EU, and the great majority of it goes to finance 
infrastructure or to assist individuals directly, without necessarily benefiting commercial enterprises.  
Consequently, as stated at the beginning of this doc ument, the notification of a particular fund does 
not prejudge the status of the aid involved. 
 G/SCM/N/220/EEC 
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  A. EUROPEAN REGIONAL DEVELOPMENT FUND 
1. Title of the programme 
 
 European Regional Development Fund (ERDF). 
 
2. Period covered by the notification 
  2009 and 2010.  
3. Programming period 
 
 The period covered by the notification refers  to programming periods:  2007-2013 (Please 
note that the previous programming period 2000- 2006 is now in the process of closure of the 
interventions).  
 In the programming period 2007-2013, the EU's intervention in the field of the Cohesion 
Policy is being realised through the Structural  Funds (SF), which are the European Regional 
Development Fund (ERDF), the European Social Fund (ESF), and the Cohesion Fund (CF). 
 
 In the programming period 2000-2006, there were  four main Structural Funds which are the 
European Regional Development Fund (ERDF), the European Social Fund (ESF), the 
European Agricultural Guidance a nd Guarantee Fund, Guidance Sec tion (EAGGF, Guidance Section) 
and the Financial Instrument for Fisheries Guidance (FIFG).  The other component of EU structural 
spending was the Cohesion Fund. 
 
4. Legal basis 
  Articles 158 and 160 of the EU Treaty.  
 For the programming period 2007-2013, the legal basis is: 
 
- Council Regulation 1083/2006 (EC) No. 1083/2003 of 11 July 2006 laying down 
provisions on the European Regional Devel opment Fund, the European Social Fund and 
the Cohesion Fund and repealing Regulation (EC) No. 1260/1999. 
- Council Regulation (EC) No. 1080/2006 Regulati on (EC) of the European Parliament and 
of the Council of 5 July 2006 on the Europ ean Regional Development Fund and repealing 
Regulation (EC) No. 1783/1999. 
- Commission Regulation (EC) No. 1828/2006 of 8 December 2006 setting out rules for 
the implementation of Council Regulation (EC) No. 1083/2006 laying down general 
provisions on the European Regional Devel opment Fund, the European Social Fund and 
the Cohesion Fund and of Regulation (EC) No . 1080/2006 of the European Parliament 
and of the Council on the European Regional Development Fund. 
5. Form of assistance granted – Grants from Community budget for 
 
 ERDF resources are mainly  used to co-finance: 
 
 productive investment leading to the creation or maintenance of jobs; 
 investment in infrastructure;  G/SCM/N/220/EEC 
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   development of endogenous potential by measures which support regional and local 
development. 
 6. Objectives 
  The previous Structural Funds for the period 2000-06 give way to a new architecture which simplifies the system in the period 2007-2013.  The objectives of the new period 2007-2013 are the 
following: 
 
(a) The Convergence objective, which shall be aimed at speeding up the convergence of 
the least-developed Member States and regions by improving conditions for growth 
and employment through the increasing and im provement of the quality of investment 
in physical and human capital, the devel opment of innovation and of the knowledge 
society, adaptability to economic and social  changes, the protection and improvement 
of the environment, and administrative effici ency.  This objective is financed by the 
ERDF, the ESF and the Cohesion Fund. 
(b) The Regional competitiveness and employment objective, which shall, outside the 
least-developed regions, be aimed at strengthening regions' competitiveness and 
attractiveness as well as employment by anticipating economic and social changes, 
including those linked to the opening of trade, through the increasing and improvement of the quality of investment  in human capital, innovation and the 
promotion of the knowledge society, entrepreneurship, the protection and 
improvement of the environment, and the improvement of accessibility, adaptability 
of workers and businesses as well as the development of inclusive job markets.  This 
objective is financed by the ERDF and the ESF. 
(c) The European territorial cooperation objective,  which shall be aimed at strengthening 
cross-border cooperation through joint local  and regional initiatives, strengthening 
transnational cooperation by means of acti ons conducive to integrated territorial 
development linked to the Union prior ities, and strengthening interregional 
cooperation and exchange of experience at th e appropriate territorial level.  This 
objective is financed by the ERDF. 
7. Eligibility 
 
The eligibility in the period 2007-2013 is as follows: 
 
(a) The convergence objective - Th e areas eligible for the convergence objective combine 
the regions eligible on a regional criteria basis (GDP is less than 75 per cent of the 
Union average) and Member States who are eligible for the Cohesion Fund on a 
national criteria basis (GNI less than 90 per cent of the European average).  
Transitional support is granted for regions  corresponding to level 2 of the common 
classification of territorial units for statistics (hereinafter NUTS level 2) within the 
meaning of Regulation (EC) No. 1059/2003, which were covered by Objective 1 in 
the previous period but whose GDP exceeds 75 per cent of the EU-15 GDP average (called "phasing-in"). 
(b) Regional competitiveness and employment obj ective - The Europ ean Union regions 
which are not eligible for the convergence obj ective or for the transitional support of 
the regional competitiveness and employment "phasing in" objective are all eligible 
for the European territorial cooperation objec tive – The areas eligible are divided in 
three: G/SCM/N/220/EEC 
Page 8 
 
 
  - For cross-border cooperation:  NUTS leve l 3 regions are eligible, along all the 
land-based internal borders and some ex ternal borders, along maritime borders 
separated by a maximum distance of 150 km. 
 
- For transnational cooperation:  all the regions are eligible but, in consultation 
with the Member States, the Commission has identified 13 cooperation areas 
(Northern Periphery, Baltic Sea, North West Europe, North Sea, Atlantic Coast, 
South West Europe, Alpine Space, E ast-Central Europe, Mediterranean, 
South-East Europe, Acores-Madeira-Canarias, Indian Ocean Area, Caribbean 
Area). 
 
- For interregional cooperation:  all the European regions are eligible. 
 
8. Principles of intervention 
 
 The principles of intervention for the pe riod 2007-2013 are the same as for the period 
2000-06:  complementarity, coherence, coordination,  conformity and additionality.  Furthermore, the 
following principles are introduced:  propor tionality, equality between men and women and 
non-discrimination, sustainable development and us ing the Funds to focus on the Lisbon strategy 
priorities.  
 The principle of complementarity :  Union actions financed by Structural Funds shall 
complement or contribute to corresponding national operations.  
 The principle of additionality :  for those regions covered by the convergence objective the 
Commission and the Member States verify the level of  public expenditure.  The Structural Funds must 
not substitute a State's infrastructural spending.   For the new programming period, there moreover 
exists a financial corrective mechanism in the even t of this principle not being respected, which was 
not the case in 2000-06. 
 
 The Funds must now target the European Union priorities in terms of the promotion of 
competitiveness and employment creation.  The Commi ssion and the Member States see to it that at 
least 60 per cent of the spending of all the Memb er States on the convergence objective and at least 
75 per cent of the expenditure on the regional co mpetitiveness and employment objective are assigned 
to these priorities. 
 
 The principle of proportionality :  newly introduced, this consists of modulating some 
obligations attributed to the Member States de pending on the total amount of expenditure on an 
operational programme. 
  The principle of partnership is widened, which is to say that any appropriate organisation 
representing civil society, environmental partners , non-governmental organisations and organisations 
responsible for promoting equality between me n and women can participate in negotiations 
concerning the use of Structural Funds.  It not only participates in management but is involved at 
every programming stage (setting up, follow-up and evaluation).  
9.  Budget for the period 2007-2013 
 
 The European Council agreed in December  2005 on the budget for the period 2007-2013 and 
allocated € 347 billion on Structural and Cohesion Funds of which 81.5 per cent are planned to be 
spent in the "Convergence" regions.  Based on simplified procedures, nearly all of the 
436 programmes covering all EU regi ons and Member States were adopt ed before the end of 2007. 
  G/SCM/N/220/EEC 
 Page 9 
 
 
   In the period 2007-2013, cohesion policy will benefit from 35.7 per cent of the total 
EU budget or Є 347.41 billion (at current prices).  81.54 per cent of this budget will be for the 
Convergence objective, 15.95 per cent for the Regional Competitiveness and Employment and 
2.52 per cent for the European Territorial Cooperation. 
 
10. Financial allocations per year  (euro, current prices) – please note that these data covers all 
3 Funds, not only ERDF) 
 
Total 2009 – 48,427,192,190 
Total 2010 – 49,270,595,551 
 11. Cohesion policy and state aid 
  Cohesion Policy provides an integrated, stra tegic, medium term planning and financial 
framework to address the reduction of regional dispar ities by promoting development.  It does this 
through geographic and financia l targeting (concentration), governance processes and evaluation 
mechanisms.  Within the context of providing fi nancial assistance to economic operators, cohesion 
policy financing must respect the state aid rules where relevant. 
 
 In line with EU cohesion policy, the new St ate aid Guidelines re-focus regional aid on the 
most deprived regions of the enlarged Union, wh ile allowing for the need to improve competitiveness 
and to provide for a smooth transition.  The use of  the Structural Funds by national authorities is 
subject to EC state aid rules.  
12. Trade effects 
  Because the Fund is designed to alleviate di sparities between regions within the Community, 
and because the aid is paid out on a horizontal basis, within eligible regions, it is considered that the 
trade effects are minimal. 
 
IV. COMMON AGRICULTURAL POLICY (CAP) 
A. G
ENERAL OBSERVATIONS  
1. Health Check of the CAP 
 During the period under review of this notifi cation the reform process of the CAP continued 
with the implementation of the Health Check  agreed by EU agriculture ministers on 
20 November 2008.  
  The Health Check further modernised, simp lified and streamlined the CAP and removed 
restrictions on farmers, thus helping them to res pond better to signals from the market and to face new 
challenges. Among a range of measures, the agreem ent abolished completely arable crops direct 
payments and the arable set-aside obligation and s ubstantially reformed intervention arrangements. It 
also ends most other coupled direct payments, increases milk quotas gradually leading up to their 
abolition in 2015, and converts market intervention in to a genuine safety net. Ministers also agreed to 
increase modulation, whereby direct payments to farmers are reduced and the money transferred to 
the Rural Development Fund. This will allow a better response to the new challenges and 
opportunities faced by European agriculture, incl uding climate change, the need for better water 
management, the protection of biodiversity, and th e production of green energy. Member States will 
also be able to assist dairy farmers in sensitive regions adjust to the new market situation.  
 G/SCM/N/220/EEC 
Page 10 
 
 
   The decisions of the Health Check entere d into force on 1 January 2009 with Council 
Regulation (EC) 72/2009 (amendments to the Singl e Common Market Organisation Regulation (EC) 
1234/2007), Council Regulation (EC) 73/2009 (repeali ng and replacing the previous Direct Aids 
Regulation (EC) 1782/2003) and Council Regul ation (EC) 74/2009 amending Regulation (EC) 
1698/2005 (Rural Development Regulation). These three regulations were published in the OJ L30 of 
31 January 2009.  
 
 Most important changes introduced by the Hea lth Check are described in more detail below. 
 
 Decoupling of support :  The previous reforms of the CAP already decoupled a large 
part of direct aid granted to farmers with the introduction of the Single Payment 
Scheme (SPS)  which is decoupled income support removing any links between 
payments and production or prices. Farmers can decide if and what to produce 
knowing that they will receive the same amount of aid, thus allowing them to adjust 
production decisions to suit market demand. To be eligible for the Single Payment, a farmer requires payment entitlements. These are calculated on the basis of the 
payments received by the farmer during a reference period (historical model) or the 
number of eligible hectares farmed during the first year of implementation of the 
scheme (regional model). The Health Check fu rther extends the decoupling of direct 
support to farmers by including most of the remaining coupled payments into the decoupled Single Payment Scheme. The remaining coupled direct support after the 
implementation of the Health Check is su ckler cow, goat and sheep premia, which 
Member States may maintain coupled. A simplified decoupled scheme called the 
Single Area Payment Scheme (SAPS)  continues to apply in the 10 new Member 
States (Slovenia and Malta apply SPS). It involves the payment of uniform amounts 
per eligible hectare of agricultural land,  up to national ceilings laid down in the 
Accession Agreements. Member States are allowed to apply SAPS until the end of 
2013 at the latest. After this date they are obliged to introduce SPS. 
 
 Other aid schemes :  In addition to the single payment, farmers can receive aid under 
other direct support schemes linked to th e area under crops or to production, 
depending on whether the Member State concerned decides to implement these schemes. A series of these support schemes is  decoupled and shifted to the SPS from 
2012 as explained under the bullet above. The energy crop premium is abolished. 
 
 Cross compliance :  Aid to farmers remains linked to the respect of environmental, 
animal welfare and food quality standards.  Farmers who do not respect the rules face 
cuts in their support. Cross compliance is simplified as a result of the Health Check 
by withdrawing standards which are not rele vant or linked to fa rmers' responsibility. 
New requirements are added to retain the environmental benefits  of set-aside and 
improve water management.  
 
 Specific support (so-called 'Article 68' measures) :  Previously, Member States 
could retain by sector 10 per cent of their national budget ceilings for direct payments 
for use for environmental measures or improving the quality and marketing of products in that sector. This possibility has become more flexible with the Health 
Check. The money no longer has to be used in the same sector; it may be used to 
address specific disadvantages affecting farmers in the dairy, beef and veal, sheep and goat meat and rice sectors in economically vulnerable or environmentally sensitive 
areas or for vulnerable types of farming; it may also be used to support risk 
management measures such as insurance schemes for adverse climatic events and 
animal or plant diseases or pest infestation and mutual funds for animal or plant  G/SCM/N/220/EEC 
 Page 11 
 
 
  diseases or environmental incident; also Member States operating the Single Area 
Payment Scheme (SAPS) system have become eligible for the scheme. As a result of 
the Health Check, Member States applying the Single Payment Scheme are allowed either to use the unused money from their national envelopes for Article 68 measures 
or to transfer it into the Rural Development Fund.  
 
 Modulation has been increased :  all farmers receiving more than €5,000 in direct 
aid have their payments reduced by 10 per cent and the money is transferred into the 
Rural Development budget. An additional cut of 4 per cent will be made on payments 
above €300,000 a year. The funding obtained this way may be used by Member 
States to reinforce programmes in the fields of climate change, renewable energy, 
water management, biodivers ity, innovation and for accompanying measures in the 
dairy sector. This transferred money will be co-financed by the EU at a rate of 75 
per cent and 90 per cent in convergence regions where the average GDP is lower.  
 
 Market intervention as a safety net :  Public intervention has been abolished for pig 
meat and set at zero for durum wheat, barley, maize and sorghum. 
 
2. Financing the CAP 
 The expenditure for Agriculture included in this  notification relates to payments made by the 
European Agricultural Guarantee Fund (EAGF) a nd the European Agricultural Fund for Rural 
Development (EAFRD) during the years 2009 and 2010. For the EAGF (first pillar of the CAP) the 
SCM questionnaire is answered in Section B be low together with detailed information on the 
individual support measures in section C (C.1 export  subsidies, C.2 Interventions in agricultural 
markets and C.3 Direct aids). Support covered by th e EAFRD (second pillar of the CAP) is treated in 
the same manner in sections D and E of this notif ication. Sections F and G cover support for pre-
accession measures in the field of agriculture and Rural Development, in so far as the payments 
occurred in the Member States of EU27. 
 
General Summary of expenditure for Agricu lture and Rural Development, million EUR 
  2008 2009 2010 
European Agricultural 
Guarantee Fund (EAGF) 43,010.83 46,119.71 43,989.58 
Export subsidies 925.45 649.53 385.09 
Other intervention in markets 4,516.80 6,356.25 3,928.76 
Direct aids 37,568.58 39,113.92 39,675.73 
Of which non-trade distorting 
direct aids 31,948.17 33,336.33 33,828.71 
European Agricultural Fund for 
Rural Development (EAFRD) 10,521.30 8,677.80 11,284.50 
Rural development 2007-2013 8,538.80 8,209.40 11,116.20 
Rural development completion of 
previous periods 1,982.50 522.30 360.50 
Pre-accession (Sapard and 
Ipard) 145.00 254.10 14.40 
 G/SCM/N/220/EEC 
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  3. Information on the Internet 
 General information on the Common Agricultural Policy can be found at: 
 http://ec.europa.eu/agriculture/index_en.htm (English)   http://ec.europa.eu/agriculture/index_fr.htm (French) 
 http://ec.europa.eu/agriculture/index_es.htm (Spanish) 
 
 The legislation referred to in this notification is  publicly available at the following websites:  
http://eur-lex.europa.eu/en/index.htm (English) http://eur-lex.europa.eu/fr/index.htm (French) 
http://eur-lex.europa.eu/es/index.htm (Spanish) 
 The EU budget can be consulted at: 
http://eur-lex.europa.eu/budget/ www/index-en.htm (English) 
http://eur-lex.europa.eu/budge t/www/index-fr.htm (French) 
http://eur-lex.europa.eu/budge t/www/index-es.htm (Spanish) 
 
B. E
UROPEAN AGRICULTURAL GUARANTEE FUND (EAGF) 
1. Title of the programme 
 
Common Agricultural Policy – Direct aids and interventions in markets ("First Pillar").  
 
2. Period covered by the notification 
 
1 January 2009 - 31 December 2010. 
 
3. Policy objective and/or purpose of the programme 
 
The policy objective aims at:  
 providing the farming community with a fair standard of living, 
 supplying consumers with food at reasonable prices, and  
 promoting effective use of resources. 
 4. Background and authority for the programme 
 
Treaty on the Functioning of the European Union, in particular Title III of Part III.  
 
5. Form of assistance granted 
 
The aid is normally in the form of grants or loans.    
 6. To whom and how the assistance is provided 
 
Payments are made to economic actors in the sect or, for the large part agricultural producers. 
  G/SCM/N/220/EEC 
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  7. Total expenditure under the programme 
 
European Agricultural Guarantee Fund - financial year (million EUR)   
  2008 2009 2010 
 Intervention in markets 4,516.8 6,356.3 3,928.8 
 Export subsidies 925.4 649.5 385.1 
 Direct aids 37,568.6 39,113.9 39,675.7 
Total EAGF 43,010.8 46,119.7 43,989.6 
Of which non-trade distorting 
direct aids 31,948.2 33,336.3 33,828.7 
 
8. Duration of the programme 
 
 The current financial pe rspective runs until 2013. 
 
9. Trade effects 
 
 In 2010, 76% of the support provided had no or at most minimally trade distorting effects. 
 C. M
EASURES FINANCED THROUGH THE EAGF  ("FIRST PILLAR " OF THE CAP) 
1. Export refunds 
 For certain of the sectors governed by a common market organisation, the Common 
Agricultural Policy provides for the possibility of  granting export refunds. The purpose of export 
refunds is to cover the difference between EU prices and international trade prices in order to enable 
exports to be effected at international trade prices.  The refund is the same for the whole of the EU; a 
differential may be applied according to destination or time (months of delivery). The amount of the 
refund is fixed periodically by the Commission. The periodicity of the fixing is different for each 
sector because of the special charact eristics of each sector. In order to facilitate export operations, in 
the case of the majority of products a system has been introduced whereby refunds can be fixed in 
advance. The refund is paid to the exporter. The total amounts of export refunds financed by the EAGF in 2008, 2009, and 2010 are as follows:   
 
Export subsidies (EAGF payments) EUR million 
Products 2008 2009 2010 
Cereals 9.7 0.9 -0.4 
Sugar  501.3 179.1 9.8 
Rice 0.0 0.0 0.0 
Olive oil 0.0 0.0 0.0 
Fruit and vegetables 18.6 5.2 0.4 
Wine 14.5 7.3 0.7 
Dairy products 28.8 181.1 186.4 
Bovine meat 33.1 31.6 25.3 
Pigmeat 99.0 59.9 18.8 
Eggs and poultry 101.5 94.7 92.6 
Refunds on non-Annex I 118.1 89.7 51.3 
Total expenditure 924.8 649.5 385.0 
 G/SCM/N/220/EEC 
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  2. Interventions in agricultural markets per sector 
 In order to stabilise markets a nd assure the agricultural population of an equitable standard of 
living, the Common Agricultural Policy provides,  in the single Common Market Organisation 
Regulation, intervention and aid measures that vary  according to the nature of the product and the 
special characteristics of the market.  This section C.2 deals with spending for the Interventions in 
agricultural markets per sector; section C.3 will address Direct Payments in a similar way. Most of the 
support schemes represented in the section C.2 of this  notification have their legal basis in Council 
Regulation (EC) 1234/2007 of 22 October 2007 estab lishing a common organisation of agricultural 
markets and on specific provisions for certain agricu ltural products, as amended by the Health Check 
Regulation (EC) 72/2009 of 19 January 2009.  
 
Interventions in agricultural markets (EAGF budget – payments) EUR million 
Products 2008 2009 2010 
Cereals   -61.0 64.2 135.4 
Rice   0.0 0.0 0.0 
Food programs   344.4 477.9 465.5 
Sugar   -25.8 -32.2 0.2 
Sugar restructuring (*)   1,284.1 3,017.7 330.3 
Olive oil   45.1 54.5 53.2 
Textile plants   21.0 21.1 28.8 
Fruits and vegetables   1,134.4 788.5 836.3 
Wine   1,155.5 1,304.4 1,308.6 
Promotion   52.0 48.6 47.4 
Other plant products   375.4 352.5 356.5 
Dairy products     119.2 189.5 342.6 
Beef and veal     14.1 27.7 -0.8 
Sheep and goat     0.0 0.0 0.0 
Pigmeat     37.0 3.6 0.5 
Eggs and poultry     0.0 0.0 0.0 
Other measures & animal products 21.3 38.2 24.3 
          
Total expenditure   4,516.8 6,356.3 3,928.8 
(*) Sugar restructuring aids and other aids are not funded by the EAGF budget, but by the temporary 
restructuring amounts in the sugar sector, as set out in article 11 of Council Regulation 320/2006, 
which are paid by operators in each Member State who hold sugar, inulin syrup and isoglucose 
production quotas for the marketing years 2006/07 to 2008/09.  
 
2.1 Cereals 
 
 The legal basis for expenditure is Counc il Regulation (EC) 1234/2007 of 22 October 2007 
establishing a common organisation of agricultural markets and on specific provisions for certain 
agricultural products (Single CMO Regulation), ame nded by the Health Check Regulation 72/2009 of 
19 January 2009. 
 
Public intervention 
 
 Public intervention is available for cereals from 1 November to 31 May. During this period it 
is open for common wheat for a maximum quantity offered of 3 million tonnes per intervention 
period. Buying into public intervention for durum wheat, barley, maize, sorghum shall be carried out 
within the limits set at 0 tonnes.    G/SCM/N/220/EEC 
 Page 15 
 
 
   The Commission may decide to modify the ceilings for these cereals if the market situation so 
requires. For these cereals buying-in prices will be determined by means of tendering procedures. The 
buying-in price shall not be higher than the reference price.  
 The intervention price for cereals is equal to the reference price- EUR 101.31/tonne.  
 2.2 Rice 
 
 The legal basis for expenditure is C ouncil Regulation 1234/2007 of 22 October 2007 
establishing a common organisation of agricultural markets and on specific provisions for certain 
agricultural products (Single CMO Regulation), ame nded by the Health Check Regulation 72/2009 of 
19 January 2009.   
 
Public intervention 
 
 Public intervention is applicable in respect of  paddy rice from 1 April to 31 July. Buying into 
public intervention can be carried out within  a defined ceiling which is set at 0.  
 
 However, the Commission may decide to con tinue intervention beyond that quantity, during 
the open period, if the market situation so requir es. The reference price is set at EUR 150/t for the 
standard quality and the maximum buying-in pric e shall be determined by means of tendering 
procedures. If the rice offered to intervention differs  from the standard quality, the price is adjusted 
accordingly. Rice will only be accepted in interven tion if it complies with certain minimum quality 
specifications.  2.3 Sugar 
  The legal basis for expenditure is Co uncil Regulation 1234/2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation), amended by the Health  Check Regulation 72/2009 of 19 January 2009. 
 Private storage 
  There is a private storage system as a safet y net in case the market price falls below the 
reference price during a representative period and is lik ely to remain at that level. Taking into account 
the market situation, the Commission may decide to  grant aid for private storage of white sugar to 
undertakings which are allocated a sugar quota.  G/SCM/N/220/EEC 
Page 16 
 
 
  Quota system 
 
 The quotas for the production of sugar, isogluc ose and inulin syrup at national or regional 
level are from the 2009/10 marketing year onwards fixed as follows:   (tonnes, Commission Regulation (EC) 183/2009) 
Member State region 
 Sugar 
 Isoglucose 
 Inulin syrup 
 
Belgium  676,235.0 114,580.2 0
Bulgaria  0 89,198.0
Czech Re public  372,459.3
Denmark  372,383.0
German y  2,898,255.7 56,638.2
Ireland  0
Greece  158,702.0 0
Spain  498,480.2 53,810.2
France (metro politan )  2,956,786.7 0
French overseas 480,244.5
Italy  508 ,379.0 32 ,492.5
Latvia  0
Lithuania  90,252.0
Hungary  105,420.0 220,265,8.0
Netherlands  804,888.0 0 0
Austria  351,027.4
Poland  1 ,405,608.1 42 ,861.4
Portu gal (mainland )  0 12,500.0
Autonomous re gion 9,953.0
Romania  104,688.8 0
Slovenia  0
Slovakia  112,319.5 68,094.5
Finland  80 ,999,00
Sweden  293,186.0
United Kin gdom  1,056,474.0 0
TOTAL  13,336,741.2 690,440.8 0
 
 Member States allocate a quota to each undertak ing producing sugar, isoglucose or inulin 
syrup established in its territory and approved und er certain conditions. For each undertaking, the 
allocated quota shall be equal to the quota unde r Regulation (EC) 318/2006 which was allocated to 
the undertaking for the marketing year 2007/2008. 
 
 The sugar, isoglucose or inulin syrup produced during a marketing year in excess of the quota may be: 
 
 used for the processing of certain products (bioethanol, chemical industry, etc.); 
 carried forward to the quota production of the next marketing year; 
 used for the specific supply regime for the outermost regions; or 
 exported within the quantitative limit fixed by the Commission respecting the 
commitments resulting from international agreements. 
  Other quantities are subject to a surplus levy: 
 
 surplus sugar, surplus isoglucose and su rplus inulin syrup produced during any 
marketing year, except for quantities carried forward to the quota production of the 
following marketing year and stored;  G/SCM/N/220/EEC 
 Page 17 
 
 
   industrial sugar, industrial isoglucose and industrial inulin syrup for which no proof 
has been supplied, by a date to be determ ined by the Commission, that it has been 
processed into one certain products referred; 
 sugar and isoglucose withdrawn from the market and for which specific obligations 
are not met. 
 
 The surplus levy is fixed by the Commission at a sufficiently high level in order to avoid the 
accumulation of quantities. The surplus levy refe rred is charged by the Member State to the 
undertakings on its territory according to the quantities of production established for those 
undertakings for the marketing year concerned.  
 
Restructuring scheme 
 
 A voluntary restructuring scheme lasting 4 years for EU sugar factories and isoglucose and 
inulin syrup producers was created, consisting of a payment to encourage factory closure and the 
renunciation of quota as well as to cope with the soci al and environmental impact of the restructuring 
process. This payment will be EUR 730 per tonne in y ears one and two, falling to  625 in year three, 
and 520 in the final year. There is also the possib ility to use some of this  fund to compensate beet 
producers affected by the closure of factories. Bo th these payments will be financed by a levy on 
holders of quota, lasting three years.   
 
2.4 Olive oil 
  The legal basis for expenditure is Council Regulation 1234/2007 (Single CMO regulation), 
amended by the Health Check Regul ation 72/2009 of 19 January 2009. 
 
 The European Commission pursues the implementation of a strategy for the quality of olive 
oil adopted in 2001. The olive oil regulatory "regime" sets marketing standards for olive oil 
concerning the packaging, labelling, presentation a nd advertising required for marketing in the EU, 
thus providing safeguards for consumers and allowing  producers to maximise the benefits of selling a 
quality product.  Member States may use up to 10 per cent of their national envelope for quality 
measures under activity programmes carried out by operator organizations.  2.5 Textile plants  
Aid for processing the straw into fibre 
 
 The legal basis for expenditure is C ouncil Regulation 1234/2007 of 22 October 2007 
establishing a common organisation of agricultural markets and on specific provisions for certain 
agricultural products  (Single CMO Regulation), am ended by the Health Check Regulation 72/2009 of 
19 January 2009.  
 An aid for processing the straw into fibre is gran ted in order to ensure the maintenance of the 
economical activity in this sector. The aid is granted to authorised primary processors on the basis of the quantity of fibre actually obtained from straw.  Nevertheless, in cases where the farmer retains 
ownership of the straw, which he is having pro cessed under contract, and proves that he has placed 
the fibres obtained on the market, the aid is granted to the farmer. A sale/purchase contract must be 
concluded between the farmer and the authorized processor. In cases where they both are one and the 
same person, the contract is replaced by a processing commitment.    
 The amount of the aid distinguishes between high quality long flax fibre and low quality 
fibres. For long flax fibre the aid is EUR 160/t for the 2008/2009 marketing, and EUR 200/t for the G/SCM/N/220/EEC 
Page 18 
 
 
  marketing year 2009/2010, and 160 EUR/t for th e marketing years 2010/2011 and 2011/2012. For 
short flax and hemp fibre the aid is EUR 90/t for the marketing year 2008/2009 until 2011/2012. The 
aid is granted within a maximum guaranteed quantity  per marketing year of 80,878 tonnes for long 
flax fibre and 147,265 tonnes for short flax and hemp fibre. These amounts are apportioned among the 
Member States as national guaranteed quantities. 
 
 As a result of the Health Check, this scheme is abolished from 1 July 2012 and the aid is 
integrated in the Single Payment Scheme.  
Cotton - National restructuring programmes for the cotton sector 
 
 EU funds are attributed to Member States to finance specific restructuring measures to assist 
the cotton sector. The restructuring programmes must be  compatible with EU law and consistent with 
the activities, policies and priorities of the EU. Regulation (EC) 637/2008 provides that each cotton 
producer Member State shall, either every four y ears and for the first time by 1 January 2009, submit 
to the Commission a draft four-year restructuring programme or submit to the Commission, by 
31 December 2009, a single draft modified restructur ing programme for a duration of eight years. The 
annual budget for the restructuring programme per Member State from the financial year 2010 
onwards shall be as follows EUR 4.0 milli on for Greece and EUR 6.134 million for Spain. 
  The restructuring programmes contain on e or more of the following measures: 
 
(a) full and permanent dismantling of ginning facilities; 
(b) investments in the ginning industry; 
(c) participation of farmers in cotton quality schemes; 
(d) information and promotion activities; 
(e) aid to machinery contractors, not exceeding losses incurred.  
 Aid is not granted for research projects a nd measures to support research projects or for 
measures which are eligible for EU support unde r Regulation (EC) 1698/2005 (Rural Development). 
 2.6 Fruit and vegetables  
 A new regulation on the fruit and vegetables sector is in place as from 1 January 2008 
(Council Regulation 1182/2007 of 26 Se ptember 2007) which has been integrated into the Single 
CMO Regulation 1234/2007), amended by the Health Check Regulation 72/2009 of 19 January 2009. 
 
 The aim of the reforms is to improve the co mpetitiveness and market orientation of the fruit 
and vegetable sector, reduce income fluctuations  resulting from crises, promote consumption – so 
contributing to improved public health – and enha nce environmental safeguards. The new measures 
cover:   
 Encouraging growers to join Producer Organisation (POs). POs have a set of tools for 
crisis management. 
 Requiring a minimum level of environmental spending for POs;  
 Increasing EU funding for promotion and organic production for POs; 
 Abolishing export subsidies for fruit and vegetables; 
 Integrating the fruit and vegetable sector  into the Single Payment Scheme.  
  G/SCM/N/220/EEC 
 Page 19 
 
 
  Producer Organisations (POs)  
 
 POs gained greater flexibility and their rul es are simplified. There is additional support 
(60 per cent EU co-financing instead of 50 per cent)  in some cases like mergers of POs and there is 
national financial assistance to POs in areas where marketed production covered by POs is less than 
20 per cent. 
 
Crisis management 
 
 Crisis management is organised through Produ cer Organisations (50 per cent financed by the 
EU budget). Tools include green harvesting/non-harv esting, promotion and communication tools in 
times of crisis, training, harvest insurance, help in securing bank loans and financing of the 
administrative costs of setting up mutual funds.  Withdrawals for free distribution to charitable 
organisations, schools etc. will be 100 per cent paid by the EU. EU aid to POs will remain limited to 
4.1 per cent of the total value of marketed produce,  but this may rise to 4.6 per cent provided that the 
excess is used only for crisis prevention and manageme nt. For three years, state aid may be granted to 
extend crisis management measures to non-memb ers who enter into a contract with a PO. 
Compensation for non-members will be no more than 75 per cent of the EU support received by PO 
members. 
 Inclusion of fruit and vegetables in the Single Payment Scheme (SPS) 
  
 See Section 3.1 of this notification. 
 
Environmental measures 
  The inclusion of fruit and vegetables in the SPS means that cross compliance (i.e. mandatory 
environmental standards, see also the section on dir ect payments in this notification) is compulsory 
for those farmers receiving direct payments. In  addition, POs devote at least 10 per cent of 
expenditure in each Operational Programme to e nvironmental measures. There is a 60 per cent EU 
co-financing rate for organic production in each Operational Programme.  
Encouraging greater consumption 
  Higher consumption of fruit and vegetables was one of the goals identified in the 
Commission's White Paper on Nutrition. POs ca n include promotion of fruit and vegetable 
consumption in their operational programmes. Ther e is an additional €6 million under the general 
promotion regulation for the promotion of fruit and vegetables targeted at children in educational 
establishments. There is an €8 million budget for free distribution of fruit and vegetables to schools, 
hospitals and charitable bodies, whic h will be 100 per cent financed by the EU up to a limit of 
5 per cent of the quantity marketed by a PO.  
 
School Fruit Scheme 
  An EU School Fruit Scheme (SFS) is operati onal as from school year 2009-2010. It aims to 
encourage healthy eating habits in young people, thus contributing to fight against obesity and 
overweight. The SFS makes available €90 million of  EU funds per year to provide fruit and 
vegetables to school children and th is money is matched by national and private funds (co-financing). 
23 Member States out of 27 have opted to participate in 2009-2010. 
 G/SCM/N/220/EEC 
Page 20 
 
 
  Transitional soft fruit payment 
 
 To allow producers of strawberries and r aspberries for processing to adapt to market 
circumstances, they receive a transitional direct payment worth €230 per hectare for maximum period 
of 5 years for a set number of hectares. Member stat es may pay a national top-up so that the total shall 
not exceed €400/hectare. 
 
Separate fruit and vegetable payment for New Member States applying SAPS 
 
 Countries applying the Single Area Payment Sche me (SAPS, see also the section on direct 
aids in this notification) can introduce a decoupl ed payment to producers who historically produced 
fruit and vegetables. 
 
2.7 Wine 
 
 Council Regulation (EU) 479/2008 (OJ L 148 of 06/06/2008)  thoroughly  reorganises the way 
the EU wine market is managed in order to en sure that EU wine production matches demand, to 
eliminate wasteful public intervention in EU wi ne markets and to make European wine more 
competitive. Most of the new rules apply from 1 August 2008 (Regulation (E U) 555/2008). Some of 
the new rules (mainly wine-making practices and labelling) apply from 1 August 2009. The following 
elements constitute the support in  the reformed wine sector. 
 
Phasing-out of distillation schemes  
 
 There will be a gradual withdrawal of dis tillation subsidies. This means that for the 
emergency distillation funding falls from maximum 20% to maximum 5% of the national funding 
budget over four years to 2012. The funding for distilla tion into alcohol for use in spirits is phased out 
over four years. Payments in the transition period  will be replaced by a single flat-rate payment per 
producer.  
 
National financial envelopes 
 
 Redirecting the funds for distillation allows the attribution of EU funds to Member States and 
the use of those funds by Member States through national support programmes to finance specific 
support measures to assist the wine  sector. Member States are respons ible for the support programmes 
and ensure that they are internally consistent. For the first time by 30 June 2008, Member States 
submitted to the Commission draft five-year suppor t programmes containing measures in accordance 
with a EU menu of measures. The support measures are drawn up at the geographical level which the 
Member States deem most appropriate. Support pr ogrammes shall contain one or more of the 
following measures:  
 Single Payment Scheme support: 
 See Section 3.1 of this notification. 
 
 Promotion on third-country markets: 
This support covers information or promo tion measures concerning EU wines in third 
countries, thereby improving their competitiveness in those countries. The support 
relate to wines with a protected designation of origin or geographical indication or 
wines with an indication of the wine grape variety. The EU contribution to promotion 
activities shall not exceed 50% of the eligib le expenditure. The measures may consist 
only of: 
  G/SCM/N/220/EEC 
 Page 21 
 
 
  o public relations, promotional or advertisement measures, in particular highlighting 
the advantages of the EU products, especia lly in terms of quality, food safety or 
environmental friendliness; 
o participation at events, fairs or exhi bitions of international importance; 
o information campaigns, in particular on the EU systems covering designations of 
origin, geographical indicati ons and organic production; 
o studies of new markets, necessary for the expansion of market outlets; 
o studies to evaluate the results of the promotional and information measures. 
 
 Restructuring and conversion of vineyards: 
The objective of measures relating to the restructuring and conversion of vineyards is 
to increase the competitiveness of wine prod ucers. Restructuring and conversion of 
vineyards is supported if Member States submit the inventory of their production 
potential. Support for restructuring and conversion of vineyards may only cover one 
or more of the following activities: 
 
o varietal conversion, including by means of grafting-on; 
o relocation of vineyards; 
o improvements to vineyard management techniques. 
 The normal renewal of vineyards which have co me to the end of their natural life is not 
supported. Support for restructuring and conversi on of vineyards may only take the following 
forms:  
o Compensation of producers for the loss of revenue due to the implementation of 
the measure. Compensation of producers for the loss of revenue may cover up to 100% of the relevant loss. 
o Contribution to the costs of restructuring and conversion. The EU contribution to 
the actual costs of restructuring and conversion of vineyards does not exceed 50%. In regions classified as convergence regi ons in accordance with Regulation (EC) 
1083/2006, the EU contribution to the costs of restructuring and conversion does 
not exceed 75%. 
 
 Green harvesting: 
Green harvesting means the total destructi on or removal of grape bunches while still 
in their immature stage, thereby reducing the yield of the relevant area to zero. 
Support for green harvesting contributes to restoring the balance of supply and 
demand in the market in wine in the EU in order to prevent market crises. It may be 
granted as compensation in the form of a flat rate payment per hectare to be 
determined by the Member State concerned. The payment does not exceed 50% of 
the sum of the direct costs of the destruc tion or removal of grape bunches and the loss 
of revenue related to the destruc tion or removal of grape bunches. 
 
 Mutual funds: 
Support for the setting-up of mutual funds provides assistance to producers seeking to 
insure themselves against market fluctuations . This support is granted in the form of 
temporary and digressive aid to cover the administrative costs of the funds. 
 
 Harvest insurance: 
Support for harvest insurance contributes to  safeguarding producers' incomes where 
these are affected by natural disasters, a dverse climatic events, diseases or pest G/SCM/N/220/EEC 
Page 22 
 
 
  infestations. Support for harvest insurance ma y be granted in the form of a financial 
EU contribution which must not exceed:  
 
(a) 80% of the cost of the insurance premiums paid for by producers for 
insurance against losses as a result of a dverse climatic events which can be 
assimilated to natural disasters; 
(b) 50% of the cost of the insurance premiums paid for by producers for 
insurance against: 
(i) losses referred to in (a) and against other losses caused by adverse 
climatic events; 
(ii) losses caused by animals, plant diseases or pest infestations. 
Support for harvest insurance may only be  granted if the insurance payments 
concerned do not compensate producers for more than 100% of the income loss 
suffered, taking into account any compensation the producers may have obtained from other support schemes related to the in sured risk. Support for harvest insurance 
must not distort competition in the insurance market. 
 
 Investments: 
Support may be granted for tangible or intangible investments in processing facilities, 
winery infrastructure and marketing of wi ne which improve the overall performance 
of the enterprise and concern one or more of the following: 
 
o production or marketing; 
o development of new products, processes and technologies 
 
Support under paragraph at its maximum rate is limited to  micro, small and medium-
sized enterprises.  
 
 By-product distillation: 
Support may be granted for the voluntary or obligatory distillation of by-products of 
wine-making. The amount of aid is fixed per % volume and per hectolitre of alcohol 
produced. No aid is paid for the volume of alcohol contained in the by-products to be distilled which exceeds 10% in relation to the volume of alcohol contained in the 
wine produced. The maximum applicable aid level is based on collection and 
processing costs. The alcohol resulting from the supported distillation is used exclusively for industrial or energy purpo ses so as to avoid distortion of competition. 
 
 Potable alcohol distillation: 
Support may be granted until 31 July 2012 to producers, for wine which is distilled 
into potable alcohol in the form of a per-hectare aid. The relevant contracts 
concerning the distillation of wine as we ll as the relevant proofs of delivery for 
distillation are submitted before support is granted. 
 
 Crisis distillation: 
Support may be granted until 31 July 2012 fo r voluntary or obligatory distillation of 
surplus wine decided upon by Member Stat es in justified cases of crisis so as to 
reduce or eliminate the surplus and at the same time ensure supply continuity from 
one harvest to the next. The alcohol resulting from the supported distillation is used exclusively for industrial or energy purposes so as to avoid distortion of competition.   G/SCM/N/220/EEC 
 Page 23 
 
 
   
The share of the available budget used for the crisis distillation measure does not 
exceed the following percentage shares as calculated against the globally available 
funds: 20% in 2009, 15% in 2010, 10% in 2011 and 5% in 2012. Member States may 
increase the available funds for the cr isis distillation measure beyond the annual 
ceilings by way of contributi ng national funds in accordance with the following limits 
(expressed in terms of percentage of the respective annual ceiling given in 
paragraph 4): 5% in the wine year 2010, 10% in the wine year 2011 and 15% in the 
wine year 2012. 
 
From 1 August 2012 Member States may grant national aid to wine producers for the voluntary or mandatory distillation of wine in  justified cases of crisis. The aid must 
be proportionate and allow this crisis to  be addressed. The overall amount of aid 
available in a Member State in any given year for such aid shall not exceed 15% of 
the globally available funds per Member State for that year. The alcohol resulting 
from distillation must be used exclusively for industrial or energy purposes so as to 
avoid distortion of competition. 
 
 Use of concentrated grape must: 
Support may be granted until 31 July 2012 to  wine producers who use concentrated 
grape must including rectified concentrated grape must to increase the natural 
alcoholic strength of product. The amount of the aid is fixed per % volume potential 
alcoholic strength and per hectolitre of the must used for enrichment. 
 
Grubbing-up 
 
 A grubbing-up scheme applies until the end of the wine year 2010/2011. The grubbing-up 
premium may be granted only if the area c oncerned complies with the following conditions: 
 
 it did not receive EU or national support for restructuring and conversion-type 
measures within the 10 wine year s preceding the grubbing-up request; 
 it did not receive EU support under any other common market organisation within the 
five wine years preceding the grubbing-up request; 
 it is tended; 
 it is not smaller than 0.1 hectare. However, that minimum size may be 0.3 hectare, if 
a Member State so decides, for certain administrative regions of that Member State in which the average of the area planted w ith vines of a wine holding exceeds one 
hectare; 
 it has not been planted in violation of any applicable EU or national provision; 
 it is planted with a wine certain grape varieties. 
 
 The specific amount of the grubbing-up premium shall be established by Member States 
within the certain scales on the basis of the histor ical yields per holding. There is a maximum annual 
budget for the grubbing-up scheme. A single percentage for acceptance of application of the amounts notified shall be set if the total amount notified to the Commission by Memb er States exceeds the 
available budget resources. By 1 February each year, Member States accept the applications: 
 
 for the areas applied for in their entirety if  the Commission has not set a percentage of 
acceptance; or 
 for the areas resulting from the application of the percentage of acceptance based on 
objective and non-discriminatory criteria and in accordance with the following 
priorities: G/SCM/N/220/EEC 
Page 24 
 
 
   
o Member States give priority to applican ts whose application for the grubbing-up 
premium covers their entire vineyard; 
o Member States give second priority to applicants who are not less than 55 years 
old, or older where Member States so provide. 
 
 Farmers who participate in the grubbing- up scheme receive, in the year following the 
grubbing-up, payment entitlements equal to the number  of hectares for which they have received a 
grubbing-up premium. The unit value of these payment entitlements must be equal to the regional 
average of the value of the entitlements of the corr esponding region. However, the unit value shall in 
any case not exceed EUR 350/ha. 
 
 Member States may grant complementary nati onal aid not exceeding 75% of the applicable 
grubbing-up premium in addition to the grubbing-up premium granted.  
 
2.8 Promotion of agricultural products  
 Legal basis is Council Regulation (EC)  3/2008 of 17 December 2007 on information 
provision and promotion measures for agricultural products on the internal market and in third 
countries (OJ L 003, 05.01.2008).  
 The EU can assist in financing measures for the information on and promotion of agricultural 
products and food on the EU internal market and in  third countries. These measures can consist of 
public relations, promotional or public ity actions, participation at events  and fairs, in particular, those 
that highlight the advantages of EU products, especia lly in terms of quality, hygiene, food safety, 
nutrition, labelling, animal welfare or environmenta l friendliness of their production. Also covered are 
information campaigns on the EU system of protected designations of origin (P.D.O), protected 
geographical indications (P.G.I) and traditional sp eciality guaranteed (T.S.G.), information on EU 
quality and labelling systems and on "organic farming".   
 
 The EU co-finances these meas ures with an annual budget of approximately € 50 million and 
by an amount normally not exceeding 50 per cent (60 per cent for measures on the internal market for 
the promotion of fruit and vegetables intended speci fically for children in schools and for measures 
concerning information on responsible drinking patterns and harm linked to hazardous alcohol 
consumption) of the total cost of approved programme, the remainder being paid by the 
professional/inter-branch organisations that propo sed them and by the Member States concerned. 
Interested professional organisations must send their proposals to the competent Authorities of the Member States following the publication of a call for proposals. These then submit to the Commission 
the list of programmes they have selected for final decision.  
 
2.9 Other plant products 
 Dried fodder 
 
 Legal basis: Council Regulation (EC) 1234/ 2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation), amended by the Health  Check Regulation 72/2009 of 19 January 2009. 
  An aid for processing in respect of the products of the dried fodder sector is granted to 
undertakings processing products of that sector falling into at least one of the following categories: 
 
 processors who have concluded contracts w ith producers of fodder for drying. Where 
a contract is a special-order contract for processing of fodder delivered by a producer,  G/SCM/N/220/EEC 
 Page 25 
 
 
  it shall include a clause containing an ob ligation for the processing undertakings to 
pay the producer the aid received for the quantity processed under the contract; 
 undertakings which have processed their own crop or, in the case of a group, that of 
its members; 
 undertakings which have obtained their supp lies from natural or legal persons having 
concluded contracts with producers of fodder for drying. 
  The aid is paid in respect of dried fodder that has left the processing plant and meets the 
following requirements: 
 
 its maximum moisture content is from 11% to 14% which may vary depending on the 
presentation of the product; 
 its minimum total crude protein content in the dry matter is not less than a certain 
percentage: 
 it is of sound and fair merchantable quality. 
  The aid is set at EUR 33/tonne. Where during a marketing year the volume of dried fodder for 
which aid is claimed exceeds the maximum guarant eed quantity 4,960,723 tonnes, the aid shall be 
reduced. The reduction shall be set by the Commi ssion at a level ensuring that budget expenditure 
does not exceed that which would have been atta ined had the maximum guaranteed quantity not been 
exceeded. 
 
 As a result of the Health Check, this scheme is abolished from 1 April 2012.   
POSEI – excluding direct aids 
  Legal basis: Council Regulation (EC) 247/2 006 of 30 January 2006 laying down specific 
measures for agriculture in the outermost regions of the Union (OJ L 042, 14/02/2006).  
 Specific measures on agriculture to remedy the difficulties caused by the remoteness, 
insularity,  distant location, small surface area, terrain, difficult climate and dependence on a limited 
number of products of the re gions of the Union referred to in Artic le 349 of the Treaty, the "outermost 
regions". 
 Community Tobacco Fund  
  Legal basis: Council Regulation (EC) 1234/ 2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation, amended by the Health Check Regulation 72/2009 of 19 January 2009. 
  Aims to improve public awareness of the harmful effects of all forms of tobacco 
consumption, in particular thr ough information and education, suppor t for the collection of data to 
establish tobacco consumption patterns and to con duct epidemiological studies on nicotinism in the 
EU, and a study on preventing nicotinism. This co mbined with specific measures to help tobacco 
growers to switch to other crops or other economi c activities that create employment and studies of 
the possibilities for tobacco growers to do so. 
 G/SCM/N/220/EEC 
Page 26 
 
 
  2.10 Milk and dairy products 
  Legal basis: Council Regulation (EC) 1234/ 2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation), amended by the Health  Check Regulation 72/2009 of 19 January 2009. 
 
Public intervention 
 
 Public intervention is available for butter produ ced directly and exclusively from pasteurised 
cream in an approved undertaking of the EU of a mi nimum butterfat content, by weight, of 82% and a 
maximum water content, by weight, of 16% and for skimmed milk powder of top quality made from 
milk in an approved undertaking in the EU by the spray process, with a minimum protein-content of 
34.0% by weight of the fat free dry matter. Th e reference prices are EUR 246.39 per 100 kg for butter 
and EUR 169.80 per 100 kg for skimmed milk powder.   
 For butter, public intervention is open durin g the period 1 March to 31 August. Where the 
quantities offered for intervention during the period laid down in paragraph 1 exceed 30 000 tonnes, 
the Commission may suspend buying-in by public inte rvention. In that case buying-in may be carried 
out on the basis of a tendering procedure according to specifications to be determined by the 
Commission.  
 For skimmed milk powder public intervention shall be open during the period 1 March to 
31 August. However, the Commission may susp end public intervention as soon as the quantities 
offered for intervention in that period exceed 109, 000 tonnes. In that case buying-in may be carried 
out on the basis of a tendering procedure according to specifications to be determined by the 
Commission. 
 
 Without prejudice to the fixing of the intervention price by means of tendering, the intervention price for butter is 90% of the referenc e price and for skimmed milk powder it is equal to 
the reference price. 
 Private storage 
  Aid for private storage is granted for the following products:  
o Unsalted butter produced from cream or milk in an approved undertaking of the 
EU of a minimum butterfat content, by weight, of 82%, a maximum milk solids-
non-fat content, by weight, of 2% and a maximum water content, by weight, of 
16%, 
o Salted butter produced from cream or milk in an approved undertaking of the EU 
of a minimum butterfat content, by we ight, of 80%, a maximum milk solids-non-
fat content, by weight, of 2%, a maximum water content, by weight, of 16% and a 
maximum salt content, by weight, of 2%. 
 
 The amount of aid for butter is fixed by the Co mmission in the light of storage costs and the 
likely trends in prices for fresh butter and butter from stocks. Where, at the time of removal from 
storage, an adverse change unforeseeable at the time  of entry into storage has occurred on the market, 
the aid may be increased.    G/SCM/N/220/EEC 
 Page 27 
 
 
  Exceptional support measures 
 
 The Commission may adopt exceptional support measures for milk and milk products for the affected market to take account of restrictions on intra-EU and third-country trade which may result 
from the application of measures for comba ting the spread of diseases in animals.  
 
Production limitation 
 
 The national quotas for the production of milk a nd other milk products marketed during seven 
consecutive periods of twelve months commencing on 1 April 2008. Producer s may have either one 
or two individual quotas, one for deliveries and the other for direct sales distinguishing between 
deliveries and direct sales. Any overrun of the na tional quotas is determin ed nationally in each 
Member State, making a distinction between deliveries and direct sales. 
  The national quotas set out in the table below are fixed without prejudice to possible review 
in the light of the general market situation and par ticular conditions existing in certain Member States. 
For Bulgaria and Romania a special restructuring reser ve is established. This reserve is released as 
from 1 April 2009 to the extent that the on-farm cons umption of milk and milk products in each of 
these countries has decreased since 2002.  
 
Member State Quota size in tonnes (2010/2011) 
Belgium  3,496,177.244 
Bulgaria  1,018,651.458 
Czech Republic  2,848,822.681 
Denmark  4,705,333.172 
Germany  29,427,253.541 
Estonia   672,547.197 
Ireland  5,614,303.234 
Greece  853,745.418 
Spain  6,364,698.709 
France  25,595,657.266 
Italy   11,288,542.866 
Cyprus   151,080.890 
Latvia   758,159.701 
Lithuania   1,773,888.389 
Luxembourg   284,144.448 
Hungary   2,070,661.410 
Malta   50,670.366 
Netherlands   11,696,089.449 
Austria   2,904,712.786 
Poland   9,760,057.552 
Portugal   2,027,470.172 
Romania   3,180,814.614 
Slovenia   599,992.992 
Slovakia 1,082,941.996 
Finland  2,542,018.517 
Sweden  3,488,329.778 
United Kingdom 15,429,184.836 
 Special restructuring reserve quantities:  Bulgaria 39 180 t and Romania 188 400 t. G/SCM/N/220/EEC 
Page 28 
 
 
   
 A surplus levy is payable on milk and other m ilk products marketed in excess of the national 
quota. The levy shall is set, per 100 kilograms of mi lk, at EUR 27.83. Member States shall be liable to 
the EU for the surplus levy resulting from overruns of the national quota, determined nationally and 
separately for deliveries and direct sales, and be tween 16 October and 30 November following the 
twelve-month period concerned, sh all pay 99% of the amount due to the EAGF. If the surplus levy 
has not been paid before the due date and afte r consultation of the Committee of the Agricultural 
Funds, the Commission shall deduct a sum equivalent to the unpaid surplus levy from the monthly 
payments. The surplus levy shall be entirely allo cated among the producers who have contributed to 
each of the overruns of the national quotas. Producers are be liable vis-à-vis the Member State for 
payment of their contribution to the surplus levy  due, for the mere fact of having overrun their 
available quotas. 
 
Aid for skimmed milk and skimmed milk powder for use as feeding stuffs 
 
 When surpluses of milk products build up or ar e likely to create a serious imbalance in the 
market, the Commission may decide to grant ai d for skimmed milk and skimmed-milk powder 
intended for use as feeding stuffs, according to cond itions and product standards to be determined by 
the Commission. The aid may be fixed in advance or by means of tendering procedure. Buttermilk 
and buttermilk powder shall be regarded as ski mmed milk and skimmed-milk powder. Aid amounts 
shall be fixed by the Commission taking into account the following factors: 
 
o the reference price for skimmed-milk powder, 
o the development of the market situati on as regards skimmed milk and skimmed-
milk powder. 
 
Aid for skimmed milk processed into casein and caseinates 
 
 When surpluses of milk products build up or are likely to occur, creating or likely to create a 
serious imbalance in the market, the Commission ma y decide that aid is granted for skimmed milk 
processed into casein and caseinates, according to co nditions and product standards of such milk and 
the casein or caseinates produced from it to be dete rmined by the Commission. The aid may be fixed 
in advance or by means of tendering procedure. Aid shall be fixed by the Commission taking into 
account the following elements:  
o the reference price for skimmed-milk powder, 
o the development of the market s ituation for skimmed milk powder. 
 
 The aid may vary, according to whether th e skimmed milk is processed into casein or 
caseinates and according to the quality of those products. 
 
Aid for the supply of milk products to pupils 
 
 Under conditions to be determined by the Co mmission, EU aid shall be granted for supplying 
to pupils in educational establishments certain processed milk products to be determined by the 
Commission. Member States may, in  addition to EU aid, grant national aid for supplying the products 
referred to in paragraph 1 to pu pils in educational establishments. Member States may finance their 
national aid by means of a levy on the dairy sector or by any other contribution from the dairy sector. 
The EU aid shall be EUR 18.15/100 kg for all milk. The amounts of aid for other eligible milk 
products shall be determined taking into account th e milk components of the product concerned. The 
aid shall be granted on a maximum quantity of 0.25 li tre of milk equivalent per pupil and per day. 
  G/SCM/N/220/EEC 
 Page 29 
 
 
  2.11 Beef and veal 
  Legal basis: Council Regulation (EC) 1234/ 2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation), amended by the Health  Check Regulation 72/2009 of 19 January 2009. 
 
Public intervention 
 
 As regards the beef and veal sector, the re ference price is fixed at EUR 2,224/tonne for 
carcasses of male bovine animals of grade R3 as la id down in the EU scale for the classification of 
carcasses of adult bovine animals.  The Commission will open public intervention for beef and veal if, 
over a representative period, the average market price in a Member State or in a region of a Member 
State recorded on the basis of the Community sca le for the classification of carcasses is below 
EUR 1,560/tonne. The Commission closes public interv ention if, over a representative period, this 
condition is no longer met. The intervention prices for beef and veal and the quantities accepted for 
intervention are determined by the Commission by means of tendering procedures. In special 
circumstances, tendering procedures may be restrict ed to, or the intervention prices and the quantities 
for intervention may be fixed per Member State or region of a Member State on the basis of recorded 
average market prices. The maximum buying-in price determined in accordance with tendering 
procedures shall not be higher than the average mark et price recorded in a Member State or a region 
of a Member State increased by an amount to be determined by the Co mmission on the basis of 
objective criteria. 
 Private storage 
  When the average EU market price recorded on  the basis of the EU scale for the classification 
of carcasses of adult bovine animals is, and is likel y to remain, at less than 103% of the reference 
price, the Commission may decide to  grant aid for private storage. 
 
Exceptional market support measures 
 
 The Commission may adopt exceptional support meas ures for the affected market in order to 
take account of restrictions on intra-EU and third- country trade which may result from the application 
of measures for combating the spread of diseases in an imals.  The measures are taken at the request of 
the Member State(s) concerned. They may be taken only if the Member State(s) concerned has (have) 
taken health and veterinary measures quickly to st amp out the disease, and only to the extent and for 
the duration strictly necessary to support the mark et concerned. The EU provides part-financing 
equivalent to 50% of the expenditure borne by  Member States. However the EU provides part-
financing equivalent to 60% of such expenditu re when combating foot-and-mouth disease. Member 
States shall ensure that, where producers contribute to  the expenditure borne by Member States, this 
does not result in distortion of competition between them. 
 
2.12 Sheepmeat and goatmeat 
  Legal basis: Council Regulation (EC) 1234/ 2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation), amended by the Health  Check Regulation 72/2009 of 19 January 2009. 
 Private storage 
  The Commission may decide to grant aid for pr ivate storage when there is a particularly 
difficult market situation for sheepmeat and goatmeat in one or more of the following quotation areas: 
 G/SCM/N/220/EEC 
Page 30 
 
 
  (a) Great Britain; 
(b) Northern Ireland; 
(c) any Member State other than the United Kingdom, taken separately. 
Exceptional market support measures 
 
 The Commission may adopt exceptional support meas ures for the affected market in order to 
take account of restrictions on intra-EU and third- country trade which may result from the application 
of measures for combating the spread of diseases in an imals.  The measures are taken at the request of 
the Member State(s) concerned. They may be taken only if the Member State(s) concerned has (have) 
taken health and veterinary measures quickly to st amp out the disease, and only to the extent and for 
the duration strictly necessary to support the mark et concerned. The EU provides part-financing 
equivalent to 50% of the expenditure borne by  Member States. However the EU provides part-
financing equivalent to 60% of such expenditu re when combating foot-and-mouth disease. Member 
States shall ensure that, where producers contribute to  the expenditure borne by Member States, this 
does not result in distortion of competition between them. 
 
2.13 Pigmeat 
 
 Legal basis: Council Regulation (EC) No  1234/2007 of 22 October 2007 establishing a 
common organisation of agricultural markets and on specific provisions for certain agricultural 
products (Single CMO Regulation), amended by the Health Check Regulation 72/2009 of 
19 January 2009. 
 Private storage 
  When the average EU market price for pig car casses as established by reference to the prices 
recorded in each Member State on the representative markets of the EU and weighted by means of 
coefficients reflecting the relative size of the pig herd  in each Member State is, and is likely to remain, 
at less than 103% of the reference price, the Commission may decide to  grant aid for private storage. 
 
Exceptional market support measures 
 
 The Commission may adopt exceptional support meas ures for the affected market in order to 
take account of restrictions on intra-EU and third- country trade which may result from the application 
of measures for combating the spread of diseases in an imals.  The measures are taken at the request of 
the Member State(s) concerned. They may be taken only if the Member State(s) concerned has (have) 
taken health and veterinary measures quickly to st amp out the disease, and only to the extent and for 
the duration strictly necessary to support the mark et concerned. The EU provides part-financing 
equivalent to 50% of the expenditure borne by  Member States. However the EU provides part-
financing equivalent to 60% of such expenditu re when combating foot-and-mouth disease. Member 
States shall ensure that, where producers contribute to  the expenditure borne by Member States, this 
does not result in distortion of competition between them. 
 2.14 Eggs and poultrymeat  
 Legal basis: Council Regulation (EC) 1234/ 2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation), amended by the Health  Check Regulation 72/2009 of 19 January 2009. 
  G/SCM/N/220/EEC 
 Page 31 
 
 
  Exceptional market support measures 
 
 The Commission may adopt exceptional support meas ures for the affected market in order to 
take account of restrictions on intra-EU and third- country trade which may result from the application 
of measures for combating the spread of diseases in an imals.  The measures are taken at the request of 
the Member State(s) concerned. They may be taken only if the Member State(s) concerned has (have) 
taken health and veterinary measures quickly to st amp out the disease, and only to the extent and for 
the duration strictly necessary to support the mark et concerned. The EU provides part-financing 
equivalent to 50% of the expend iture borne by Member States. Member States shall ensure that, 
where producers contribute to the expenditure borne  by Member States, this does not result in 
distortion of competition between them.  2.15 Bee-keeping  
 Legal basis: Council Regulation (EC) 1234/ 2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on speci fic provisions for certain agricultural products 
(Single CMO Regulation), amended by the Health  Check Regulation 72/2009 of 19 January 2009. 
 
Special provisions for the apiculture sector 
 
 With a view to improving general conditions for the production and marketing of apiculture 
products, Member States may draw up a national programme for a period of three years ('bee-keeping 
programme') aiming to improve general conditions  for production and marketing of apicultural 
products. The measures which may be included in the 'bee-keeping programme' are the following: 
 
 technical assistance to beekeeper s and groupings of beekeepers; 
 control of varroasis; 
 rationalisation of transhumance; 
 measures to support laboratories carrying out analyses of the physico-chemical 
properties of honey; 
 measures to support the restocking of hives in the EU; 
 cooperation with specialised bodies for th e implementation of applied research 
programmes in the field of beekeeping and apiculture products. 
 
 Measures financed from the EAFRD in accordance with Council Regulation (EC) 1698/2005 
shall be excluded from the apiculture programme . The EU shall provide part-financing for the 
apiculture programmes equivalent to 50% of  the expenditure borne by Member States. 
 3. Direct aids 
 The support schemes represented in this section C.3 of this notification find their legal basis 
in Council Regulation (EC) 73/2009 of 19 January 2009 establishing common rules for direct support 
schemes for farmers under the common agricultural policy and establishing certain support schemes 
for farmers  (OJ L30, 31.1.2009), as well as Council Regula tion 1782/2003 of 29 September 2003 (OJ 
L270, 21.10.2003) and Council Regulation 1234/200 7 of 22 October 2007 (OJ L299, 16.11.2007). 
 
 The level of direct aids for the period covered by this notification is as follows: G/SCM/N/220/EEC 
Page 32 
 
 
  Direct Aids (EAGF financial year - payment appropriations), EUR million 
 
  2008 2009 2010 
 Coupled Decoupled Coupled Decoupled Coupled Decoupled 
SPS (Single Payment Scheme) (1) - 28,973.8 - 29,612.9 - 29,367.8 
SAPS (Single Area Payment Scheme) - 2,974.4 - 3,723.4 - 4,460.9 
Arable crops   1,854.6 - 1,672.0 - 1,679.4 - 
Sugar   51.8 -       22.9 - 51.6 - 
Rice   168.2 - 164.4 - 168.9 - 
Olive oil   126.3 - 96.0 - 97.3 - 
Flax and hemp   0.0 - 0.0 - 0.0 - 
Cotton   260.6 - 216.9 - 221.7 - 
Silkworms   0.5 - 0.4 - 0.4 - 
Fruit and vegetables   301.9 - 496.3 - 506.1 - 
Wine   0.0 - 0.0 - 0.0 - 
Tobacco   310.4 - 300.6 - 295.8 - 
Seeds   20.0 - 23.2 - 25.1 - 
Hops   2.5 - 2.5 - 2.5 - 
Dairy products   18.8 - 0.0 - 0.0 - 
Bovine meat   1,766.5 - 1,634.4 - 1,615.5 - 
Sheepmeat and goatmeat   333.6 - 305.3 - 321.7 - 
Pigmeat, eggs and poultry 0.0 - 0.0 - 0.0 - 
Fishery products   0.0 - 0.0 - 0.0 - 
POSEI   410.2 - 412.6 - 425.7 - 
Specific types of farming & quality 
production (2)     428.7   434.1   
Other products / measures (3) -5.8 - 1.4 - 1.0 - 
Total expenditure   5,620.4 31,948.2 5,777.6 33,336.3 5,847.0 33,828.7 
 
(1) Additional amounts of aid, Separate Sugar Payment and Separate Fruit and 
Vegetables payment are included. 
(2) For Financial year 2008, this payment amount is included in each concerned sector 
and amounted to 422.9 EUR million. 
 (3) Dried fodder, grain legumes, recoveries and other measures. 3.1 Single Payment Scheme (SPS) 
 
 The introduction of the SPS decided in the CAP reform of 2003 removed links between 
production and support. The main aims of SPS are to allow farmers freedom to produce to market 
demand, to promote environmentally and economi cally sustainable farming and to simplify CAP 
application for farmers and administrators. All fa rmers may apply for direct payments. The single 
payment is an annual income support payment to farm ers that is independent of what and whether a 
farmer produces   (decoupled income support).    G/SCM/N/220/EEC 
 Page 33 
 
 
   In 2005, 2006 or 2007, depending on th e MS choice, farmers were allocated payment 
entitlements  based on reference amounts in the peri od 2000–02. Payment entitlements were only 
distributed to farmers exercising an agricultural ac tivity at the date each Member State introduced the 
scheme. The value of each entitlement depends on th e model chosen by the Member State. Member 
States have two main options of how to calculate  the value of the payment entitlements. The main 
difference is whether they base the value on the di rect payments individual farmers received in the 
historic reference period - so called "historical a pproach", thus producing di fferent levels of SPS for 
each farmer, or whether all payments are averaged  out over a Member State or region within a 
Member State – so called "regional approach". 
 
 According to the  historical approach  each farmer is granted payment entitlements 
corresponding to the payments he or she received during the reference period (reference amounts) and 
the number of hectares he or she was farming durin g the reference period and which gave right to 
direct payments in the reference period. Following the ' regional (flat rate) approach ' reference 
amounts are not calculated at individual farmer leve l but at regional level - the sum of the payments 
received by the farmers in the region concerned durin g the reference period. The value of the payment 
entitlements in that regional model is establishe d by dividing the regional reference amounts by the 
number of eligible hectares declared by the farm ers of the region in the year of SPS introduction. 
Finally, each farmer receives a number of (flat ra te) entitlements equal to the number of eligible 
hectares declared in the year of SPS introduction.  This approach entails some redistribution of 
payments between farmers.  Member States may also calculate SPS payments using a part-
historic/part-flat rate approach. Such 'hybrid ' systems can further vary over the period between first 
application of the SPS and full implementation, giving rise to dynamic as well as to static hybrid 
systems.  
 
 Payments are granted where farmers have eligib le hectares at their disposal to activate the 
appropriate number of entitlements. Any payment entitlement accompanied by an eligible hectare 
shall give right to the payment of the amount fixe d by the payment entitlement. Transfers of payment 
entitlements, with and with out land, are allowed. 
 
 Member States may grant specific support  to agricultural activities that encourage the 
protection or enhancement of the environment or  entail additional agri-environment benefits, for 
improving the quality and marketing of agricultural products, for practising e nhanced animal welfare 
standards, to address specific disadvantages affecting farmers in the dairy, beef, goat and sheep meat and rice sectors in economically vulnerable or envi ronmentally sensitive areas or for vulnerable types 
of farming, to support risk management measures such as insurance scheme s for adverse climatic 
events and animal or plant diseases or pest infesta tion and mutual funds for animal or plant diseases or 
environmental incident. These specific payments may use up to 10% of the funds available (under 
national ceilings) in the SPS.   
 
Inclusion of fruit and vegetables in the Single Payment Scheme (SPS) 
  Land covered by fruit and vegetables became eligible for payment entitlements under the SPS 
which applies in the other farm sectors, at the latest from 2011 on. Coupled support for processed fruit 
and vegetables is a bolished, at the latest by the end of 2012 . The total amount transferred to the SPS is 
around €800 million. For tomatoes, Member States are allowed to apply transitional payments for a 
four-year transitional period (2008-2011), provide d that the coupled proportion of the payment does 
not exceed 50 per cent of the national ceiling. For non-annual crops, they are allowed to apply 
transitional payments for five years, provided that after 31 December 2010, the coupled proportion 
does not exceed 75 per cent of the national ceiling. 
 G/SCM/N/220/EEC 
Page 34 
 
 
  Inclusion of vine sector in the Single Payment Scheme (SPS) 
 
 Land under vineyards became eligible for ac tivation of payment entitlements under the SPS. 
Member States may also provide decoupled support to  historical vine-growers by allocating payment 
entitlements within the meaning of Chapter 3 of T itle III of Regulation (EC) 1782/2003 in accordance 
with point O of Annex VII to that Regulation. Once effective this support remains in the Single 
Payment Scheme. 
  Where Member States choose to provide suppor t under the Single Payment Scheme, they 
must establish the reference amount of each farmer as well as the applicable hectares on the basis of 
objective and non-discriminatory criteria and in respect of a representative reference period of one or more wine years starting from the wine year 2005/ 2006. However, the reference criteria used to 
establish the reference amount and applicable hectares cannot be based on a reference period 
including wine years after the wine year 2007/2008 where the transfer in support programmes concerns compensation to farmers who have hither to received support for potable alcohol distillation 
or have been the economic beneficiaries of the s upport for the use of concentrated grape must to 
enrich wine.  
National ceilings  (Annex VIII of Regulation 73/2009) 
1000 EUR, the amounts include but are not limited to SPS envelopes 
Member 
State 2009 2010 2011 2012 2013 2014 2015 2016 and 
subsequent 
years 
Belgium  614,179 611,805 611,805 614,855 614,855 614,855 614,855 614,855 
Denmark  1,030,478 1,030,478 1,030,478 1,049,002 1,049,002 1,049,002 1,049,002 1,049,002 
Germany  5,770,254 5,771,977 5,771,977 5,852,908 5,852,908 5,852,908 5,852,908 5,852,908 
Greece  2,380,713 2,21 1,683 2,214,683 2, 232,533 2,216,53 3 2,216,533 2,21 6,533 2,216,533 
Spain  4,858,043 5,091,044 5,108,650 5,282,193 5,139,444 5,139,444 5,139,444 5,139,444 
France  8,407,555 8,420,822 8,420,822 8,521,236 8,521,236 8,521,236 8,521,236 8,521,236 
Ireland  1,342,268 1,340,521 1,340,521 1,340,869 1,340,869 1,340,869 1,340,869 1,340,869 
Italy 4,143,175 4,207,177 4,227,177 4,370,024 4,370,024 4,370,024 4,370,024 4,370,024 
Luxembourg  37,518 37,536 37,646 37,671 37,084 37,084 37,084 37,084 
Netherlands  853,090 853,090 853,090 897,751 897,751 897,751 897,751 897,751 
Austria  745,561 745,235 745,235 751,606 751,606 751,606 751,606 751,606 
Portugal  608,751 589,499 589,499 605,962 605,962 605,962 605,962 605,962 
Finland  566,801 565,520 565,520 570,548 570,548 570,548 570,548 570,548 
Sweden  763,082 763,082 763,082 770,906 770,906 770,906 770,906 770,906 
United 
Kingdom  3,985,895 3,975,916 3,975,973 3,988,042 3,987,922 3,987,922 3,987,922 3,987,922 
 
3.2 Single Area Payment Scheme (SAPS)  
 The new Member States may u se, for a transition period ending no later than 2013, a simple 
regime for granting direct payments to farmers, the Single Area Payment Scheme (SAPS). This regime  facilitates and reduces the cost of the preparatory work to be made before and during the first 
years of accession with only payments per ha of agricultural land. The SAPS is a direct support 
scheme which replaces all direct payments – with some exceptions – with a single area payment.   
 SAPS is a decoupled support scheme  not requiring production based on two elements fixed 
at national level. Firstly a national financial enve lope, to be established by the Commission which is 
the sum of all the direct payments the Member State concerned would receive under former direct 
payment regimes taking into account the applicable ph asing-in rate of the calendar year in question. 
Secondly a national agricultural area, to be established as that part of the agricultural area that was in  G/SCM/N/220/EEC 
 Page 35 
 
 
  'good agricultural condition' in June 2003 for the NMS acceded the EU in 2004 and to be adjusted 
according to objective criteria to be approved by th e Commission (e.g. reduction to take into account 
that the concerned Member State could decide not gr anting direct payments to farms smaller than one 
ha). The SAPS amount per ha results from dividing the national financial envelope by the national 
agricultural area of the concerned Member State. All new Member States apart from Malta and 
Slovenia have decided to use SAPS.  
 
 The Act of Accession of the Czech Republic, Es tonia, Cyprus, Latvia, Lithuania, Hungary, 
Malta, Poland, Slovenia and Slovakia and that of Bulgaria and Romania provide for a transitional 
period for the progressive introduction of the CAP di rect payments to farmers in the new Member 
States, from 25% in 2004 to 100% in 2013 (respectively from 25% in 2007 to 100% 2016 in Bulgaria and Romania). It also establishes the possibility fo r the new Member States, during the transitional 
period and subject to the approval by the Commissi on, to pay farmers additional support in the form 
of Complementary National Direct Payments  (CNDPs, commonly known as 'top-ups'). 
 
National ceilings for the new Member States  (Annex VIII of Regulation 73/2009) 
(1000 EUR, the amounts include but are not limited to SAPS envelopes)  
Member 
State 2009 2010 2011 2012 2013 2014 2015 2016 and 
subsequent 
years 
Bulgaria 287,399 336,041 416,372 499,327 580,087 660,848 741,606 814,295 
Czech 
Republic 559,622 654,241 739,941 832,144 909,313 909,313 909,313 909,313 
Estonia 60,500 71,603 81,703 92,042 101,165 101,165 101,165 101,165 
Cyprus 31,670 38,928 43,749 49 ,146 53,499 53,499 53,499 53,499 
Latvia 90,016 105,368 119,268 133,978 146,479 146,479 146,479 146,479 
Lithuania 230,560 271,029 307,729 346,958 380,109 380,109 380,109 380,109 
Hungary 807,366 947,114 1,073,824 1,205,037 1,318,975 1,318,975 1,318,975 1,318,975 
Malta* 3,752 4,231 4,726 5,137 5,102 5,102 5,102 5,102 
Poland 1,877,107 2,192,294 2,477,294 2,788,247 3,044,518 3,044,518 3,044,518 3,044,518 
Romania 623,399 729,863 907,473 1,086,608 1,264,472 1,442,335 1,620,201 1,780,406 
Slovenia* 87,942 103,389 117,406 131,537 144,236 144,236 144,236 144,236 
Slovakia 240,014 280,364 316,964 355,242 388,176 388,176 388,176 388,176 
* Slovenia and Malta apply SPS 
 
3.3 Crops area payments  
 As a result of the 2003 Reform decisions Member States were allowed to retain 25% of the 
component of national ceilings corresponding to th e arable crops payments except compulsory set-
aside payment or, alternatively, up to 40% of the supplementary durum wheat aid in order to continue 
the existing coupled per hectare payments up to t hose percentage levels. Two Member States (France 
and Spain) are using the first option; no Member State is using the second option.   
 The area payment is fixed on a per hectare basi s and regionally differentiated. The payment is 
granted for the area which is down to arable crops or subject to set-aside and which does not exceed 
the total number of hectares of the regional base area or areas as fixed in Annex VI of Commission 
Regulation (EC) 2316/1999. When the sum of the areas for which payment is claimed under the 
arable crops' scheme, including set-aside is in ex cess of the base area, the eligible area per farmer 
shall be reduced proportionately. 
 
 The area payment is calculated by multiplying the basic amount per tonne by the average 
cereal yield determined in a regionalisation plan fo r the region concerned and by the recoupling rate 
(25%). The calculation is made using the average cereals yield. However, where maize is treated G/SCM/N/220/EEC 
Page 36 
 
 
  separately, the 'maize' yield shall be used for maiz e and the "cereals other than maize" yield is used 
for cereals, oilseeds, linseed and flax and hemp gr own for fibre. The basic amount for arable crops 
and for set-aside is fixed at EUR 63.00 /t from the 2005/2006 marketing year onwards. 
 
 Up to a ceiling of 2 million hectares energy crops  used for energy products are granted a fixed 
aid of 45 EUR/ha.  
 
 North of the 62nd Parallel farmers producing arable crops  are granted a fixed aid of 24 EUR/t 
multiplied by a fixed yield determined for the region. 
 
 As a result of the Health Check, these re gimes are abolished from 1 January 2010. 
 
3.4 Supplementary aid for durum wheat  
 A supplement to the area payment of EUR 285/ha  multiplied by the recoupling rate (25%) for 
the marketing year from 2006/2007 onwards is paid for the area down to durum wheat in traditional 
production zones subject to the following limits: 
 
Spain 594,000 ha 
France 208,000 ha 
 
 Should the total of the areas for which a supplem ent to the area payment is claimed be greater 
than the limit, the area per farmer for which th e supplement may be paid shall be reduced 
proportionately.  
 
 As a result of the Health Check, this regime is abolished from 1 January 2010.  
 
3.5 Production aid for seeds 
 
 Member States may grant, on a yearly basis, ai ds for the production of basic seed or certified 
seeds. The amount of aid claimed shall not exceed a ceiling, fixed by the Commission, corresponding 
to the component of seed aids for the species con cerned in the national ceiling. When the total amount 
of aid claimed exceeds the fixed ceiling, the aid per farmer is reduced proportionately in that year. 96] 
 
 As a result of the Health Check, this regime is abolished from 1 January 2012 at the latest.  
 
3.6 Suckler cow premium 
 
 Member States may opt for keeping up to 100% of the ' suckler cow premium'  coupled. The 
payments are livestock payments made on a fixed nu mber of head. Farmers keeping suckler cows on 
their holdings may qualify, on application, for a prem ium for maintaining suckler cows. It is granted 
in the form of an annual premium per calendar year  and per farmer within the limits of individual 
ceilings. 
  The suckler cow premium shall be granted to any farmer: 
 
 not supplying milk or milk products from his farm for 12 months from the day on 
which the application is lodged. The supply of  milk or milk products directly from the 
holding to the consumer shall not, however, prevent grant of the premium, 
 supplying milk or milk products the total i ndividual quota of which, as referred to in 
Article 67 of Regulation 1234/2007, does not  exceed 120,000 kg. However, Member 
States may decide on the basis of objective criteria, which they determine, to change  G/SCM/N/220/EEC 
 Page 37 
 
 
  or waive this quantitative limit, provided that the farmer keeps, for at least six 
consecutive months from the day on which the application is lodged a number of 
suckler cows at least equal to 60% and of heifers at most equal to 40% of the number 
for which the premium was requested. 
 
 Per eligible animal, the amount of the premium is set at EUR 200.  
 
3.7 Additional suckler cow premium 
 
 Member States may grant an additional nationa l suckler cow premium, up to a maximum of 
EUR 50 per animal, provided that no discrimination is caused between stock farmers in the Member 
State concerned.  
 3.8 Beef special premium  
 Member States may keep up to 75% of the 'special male premium' coupled. A farmer holding 
male bovine animals on his holding may qualify, on app lication, for a special premium. It is granted 
in the form of an annual premium per calendar year  and per holding within the limits of regional 
ceilings for not more than 90 animals for each of  the following age brackets. The special premium 
shall be granted no more than once in the life of each bull from the age of nine months and no more 
than twice in the life of each steer, at nine and at  21 months. To qualify for the special premium any 
animal covered by an application shall be held by the farmer for fattening for a determined period and 
each animal shall be covered until slaughter or until e xport by an animal passport or, if not available, 
an equivalent administrative document. When in a given region the total number of bulls from the age 
of nine months and of steers from nine months to 20 months of age, for which an application has been 
made and which satisfy the conditions for granti ng the special premium exceeds the regional ceiling, 
the number of all eligible animals per farmer for th e year in question is reduced proportionately. The 
amount of the special premium is EUR 210 per elig ible bull and EUR 150 per eligible steer and age 
bracket. 
 
 As a result of the Health Check, this regime is abolished from 1 January 2012 at the latest.  
 3.9 Beef slaughter premium (calves and adults)  
 Member States may retain up to 100% of the 'slaughtering premium for calves' and up to 40% 
of the 'slaughter premium for adult bovine animals' coupled.  
  A farmer keeping bovine animals on his holding  may qualify, on application, for a slaughter 
premium. It is granted, within national ceilings, on sl aughter of eligible animals or on their export to a 
third country after a retention period. Bulls, steers, cows and heifers from the age of eight months and 
calves of more than one and less than eight months  old and of carcass weight up to 185 kg are eligible 
for the slaughter premium. The amount of the prem ium is EUR 80 per eligible adult and EUR 50 per 
eligible calf. 
 
 The national ceilings referred to above ha ve been established per Member State and 
separately for both groups of animals. Each ceiling is equal to the number of animals in each of these 
two groups which were slaughtered in the Member State concerned in 1995 to which are added those 
animals exported to third countries. 
 
 As a result of the Health Check, this regime is abolished from 1 January 2012 at the latest.  
 G/SCM/N/220/EEC 
Page 38 
 
 
  3.10 Sheep and goat premia 
  Member States may retain 50% of the sheep and goat premiums (i.e. 50% of the sheep/goat 
component of the national ceiling) as coupled paym ents. The level of the sheep premium has been 
fixed for several years in advance at EUR 21 per ewe (EUR 16.8 for ewes kept for milk production, 
and for female goats), plus a EUR 7 supplementary premium payable in Less Favoured Areas (LFA) 
only. These payment rates should be multiplied with the same percentage rat es that will remain as 
coupled payment. To qualify for the supplementary pr emium a farmer must have at least 50% of his 
agricultural area in the LFA. The supplementary premium may also apply to farmers practising 
transhumance. 
 
3.11 Payments to starch potato producers 
  Aid is paid for farmers producing potatoes in tended for the manufacture of potato starch. The 
amount of the payment is EUR 66.32 and it applies to the quantity of potatoes needed for making one 
tonne of starch. It is adjusted according to the star ch content of the potatoes. The aid is paid only in 
respect of the quantity of potatoes covered by a cu ltivation contract between the potato producer and 
the starch manufacturer within the limit of the quota allocated to such undertaking. 
 
 Apart from the direct aid, a premium of EUR 22.25/tonne can be paid to potato starch manufacturers for the quantity of potato starch up to the quota limit, provided that they have paid to 
potato starch producers a minimum price for all the potatoes necessary to produce starch up to that 
quota limit.  
 As a result of the Health Check, these re gimes are abolished from the marketing year 
2012/2013. 
 
3.12 Area aid for rice 
 
 The crop specific payment for rice is granted per hectare of land sown under rice and where 
the crop is maintained until at least the beginning  of flowering under normal growth conditions. 
However, crops grown on areas which are fully so wn and which are cultivated in accordance with 
local standards, but which do not attain the stage of flowering as a result of exceptional weather 
conditions recognised by the Member State concerned,  remain eligible for aid provided that the areas 
in question are not used for any other purpose up to this growing stage. 
 
 The amount of the crop specific payment for rice is  set according to the yields in the Member 
States concerned. (Section 1, Chapter 1,  Title IV of the Regulation 73/2009) 
 
 As a result of the Health Check, this regime is abolished from 1 January 2012 at the latest. 
 
3.13 Aid for olive groves   To ensure olive tree maintenance, and thus avoid the degradation of  land cover and landscape 
or negative social consequences, a part of the CA P support can be linked to the maintenance of olive 
groves of environmental or social value. Having deci ded on the proportion of aids to be paid via the 
SPS (60% or more) the remaining aid (up to a maxi mum of 40%) is retained by Member States as 
'national envelopes ' to make additional payments to olive groves of environmental or social value 
according to objective criteria (e.g. including aspects of  local traditions and culture, in particular in 
marginal areas). Within the limits  of their national envelopes, Member States may define up to five 
different categories of olive groves eligible fo r support, based on their environmental and socio-
economic value, and fix an aid per hectare accordingl y. In the interest of simplification, these olive 
grove payments will only be made for amounts of at least EUR 50 per aid claim. Only one Member  G/SCM/N/220/EEC 
 Page 39 
 
 
  State decided to implement this option, for a limited amount. 
 
 As a result of the Health Check, this regime is abolished from 1 January 2010. 
 
3.14 Tobacco premium 
 
 For the harvest years 2006, 2007, 2008 and 2009 aid may be granted to farmers producing 
raw tobacco. The aid is granted to farmers who r eceived a tobacco premium payment in accordance 
with Regulation (EEC) 2075/92 in the calendar years 2000, 2001 and 2002, and to farmers who 
acquired tobacco  production quotas during the period 1 Ja nuary 2002 to 31 December 2005. The 
payment is  subject to the following conditions: 
 
 the tobacco must come from a predefined production area,  
 certain quality requirements must be fulfilled,  
 leaf tobacco must be delivered by the farm er to the premises of the first processor 
under a cultivation  contract and  
 the payment is made in such a way as to ensure equal treatment between farmers 
and/or according to objective  criteria such as location of tobacco producers in an 
Objective 1 region or the production of varieties of a  certain quality.  
 
 The maximum amount of the total of the aid, including the amounts to be transferred to the 
Community Tobacco Fund referred is: 
 2006 – 2009 > (in EUR million)  
Germany 21.287 
Spain  70.599 
France  48.217 
Italy (except Apulia) 189.366 
Portugal 8.468 
 
 The transfer to the Community Tobacco Fund  of an amount equal to 5% for the calendar 
years 2007, 2008 and 2009 of the  aid granted in accordance with th is Chapter finances actions of 
information under the Community Tobacco  Fund provided for in Article  13 of Regulation (EEC) 
2075/92. <1 
 
3.15 Hops area aid 
  In the case of hops payments, Member States may retain up to 25% of the component of 
national ceilings coupled. It is granted to farmers producing hops in hop production areas as published 
by the Commission pursuant to Article 6(2) of Council Regulation (EEC) 1784/77. The areas must be 
planted with hops and the must actually be harvested.  
 As a result of the Health Check, this regime is abolished from 1 January 2010.  
 
3.16 Durum wheat quality premium 
 
 For durum wheat a quality premium of EUR 40 pe r hectare, depending on the use of varieties 
recognized as being of a high quality for the production of pasta or semolina, is introduced. The aid is 
limited to traditional production zones and to national base areas. 
  As a result of the Health Check, this regime is abolished from 1 January 2010. 14] 
 G/SCM/N/220/EEC 
Page 40 
 
 
  3.17 Protein crop payment 
 
 For peas, field beans and sweet lupines, the amount of aid is EUR 55.57/hectare. It is paid within the limits of an EU maximum guaranteed area of 1,648 million hectares.  If the area is 
exceeded, the aid is reduced proportionally.  
 
 As a result of the Health Check, this regime is abolished from 1 January 2012 at the latest.  
 
3.18 Area payment for nuts 
 
 A EU aid is granted to farmers producing nuts.  Nuts include almonds, hazelnuts or filberts, 
walnuts, pistachios and locust beans. Member St ates may differentiate the aid in function of the 
products or by increasing or decreasing the nati onal guaranteed areas. However, in each Member 
State, the total amount of aid granted in a given y ear shall not be higher than a ceiling calculated by 
multiplying the number of hectares of its National Guaranteed by an average amount of EUR 120.75. 
A maximum guaranteed area of 829,229 ha has been  established. Member States may make the 
granting of EU aid conditional on farmers being me mbers of a producer organisation recognised in 
accordance with Article 125b of Re gulation 1234/2007. Member States may decide that the payment 
of the aid is made to a producer organisation on the behalf of its members. The amount of aid received 
by the producer organisation is then paid to its  members. However, Member States may authorise a 
producer organisation, as compensation for the services provided to its members, to operate a 
deduction on the amount of EU aid up to a maximum of 2%.  
  Member States may grant national aid, in a ddition to the EU aid, up to a maximum of 
EUR 120.75 per hectare per year. The national aid may be paid only for areas receiving EU aid. 
Member States may make the granting of national aid conditional on farmers being members of a 
producer organisation recognised in accordance with Article 125b of Regulation 1234/2007. 
  As a result of the Health Check, this regime is abolished from 1 January 2012 at the latest. 
 
3.19 Aid for energy crops 
  An aid of EUR 45 per hectare per year shall be granted for areas sown under energy crops. 
Energy crops shall mean crops supplied essentia lly for the production of the following energy 
products: 
 
 products considered biofuels listed in Artic le 2, point 2 of Directive 2003/30/EC of 
the European Parliament and of the Council of 8 May 2003 on the promotion of the 
use of biofuels or other renewable fuels for transport, 
 electric and thermal energy produced from biomass. 
  A maximum guaranteed area of 2 000 000 ha for which the aid may be granted was  
established.  Where the area for which aid is claimed exceed s the maximum guaranteed area, the area 
per farmer for  which aid is claimed shall be reduced propor tionately in that year. The aid shall be 
granted only in respect of areas whose production is covered by a contract between the farmer  and the 
processing industry or by a contract between the fa rmer and the collector, except in case of processing  
undertaken by the farmer himself/herself on the holding.   Member States shall be authorised to pay 
national aid up to 50% of the costs associated with establishing  permanent crops for the areas which 
have been subject to an application for the aid fo r energy crops. The new Member States grant this aid 
separately from SAPS since 2007.  
  G/SCM/N/220/EEC 
 Page 41 
 
 
   As the maximum guaranteed area of 2 million ha  for the EU had been overshot in 2007, a 
reduction coefficient of 0.70337 was applied. 
 
 As a result of the Health Check, this regime is abolished from 1 January 2010.  
 3.20 Aid for silkworms 
 
 An aid is granted for silkworms and for silk worm eggs within the EU. It is granted to 
silkworm rearers for each box of silkworm eggs used, on condition that the boxes contain a minimum 
quantity of eggs and that the worms have been su ccessfully reared. The aid per box of silkworm eggs 
used is EUR 133.26.  3.21 Payments for specific types of  farming and quality production 
 
 This support covers payments in accordan ce with Article 69 of Regulation 1782/2003 
Article 72(3) of Regulation 73/2009. Member Stat es may retain up to 10% of the component of 
national ceilings. The additional paym ent is granted for specific types of farming which are important 
for the protection or enhancement of the environm ent or for improving the quality and marketing of 
agricultural products. 
 
3.22 Additional amount for sugar beet and cane producers 
 
 This support concerns payments in accordance with Section 7, Chapter I of Title IV of 
Regulation 73/2009 in Member States which have  granted the restructuring aid provided for in 
Article 3 of Regulation (EC) No 320/2006 for at least 50% of the sugar quota. The aid shall is granted 
for a maximum of five consecutive years as from the marketing year in which the threshold of 50% 
has been reached but no later than for the marketi ng year 2013/2014. The aid is granted in respect of 
the quantity of quota sugar obtained from sugar beet  or cane delivered under contracts concluded in 
accordance with Article 50 of Regulation (EC) 1234/2007. The aid is expressed per tonne of white 
sugar of standard quality. The amount of the aid sh all be equal to half of the amount obtained by 
dividing the amount of the ceiling referred to in Annex XV of Regulation 73/2009 for the Member 
State concerned for the corresponding year by the total of the sugar and inulin syrup quota fixed on 
20 February 2006 in Annex III to  Regulation (EC) 318/2006.  
 
3.23 Separate Sugar Payment 
  Certain New Member States applying the Single Area Payment Scheme may grant within the 
application of this scheme a decoupled Separate S ugar Payment. The payment is granted within the 
limits of the ceilings set out in Annex XV of Regulation 73/2009. 
 
3.24 Cotton  
  The coupled aid is granted per hectare of eligib le area of cotton. In order to be eligible, the 
area shall be located on agricultural land authorised  by the Member State for cotton production, sown 
under authorised varieties and actually harvested un der normal growing conditions. The aid is paid for 
cotton of sound and fair merchantable quality. Th e obligation to maintain coupled support in the 
cotton sector results from Protocol 4 annexed to the Act of accession of Greece.  
 G/SCM/N/220/EEC 
Page 42 
 
 
  Cotton coupled support - Base areas, fixed yields and reference amounts. 
 Base area Fixed yield Aid per ha (€/t)* 
Greece 250,000 ha 3.2 tonne/ha EUR 251.75 
Spain 48,000 ha 3.5 tonne/ha EUR 400.00 
Portugal 360 ha 2.2 tonne/ha EUR 252.73 
*Farmers who are members of an approved inter-branch organisation are granted an aid per eligible hectare 
increasing the amount of aid per hectare mentioned above by an amount of EUR 2. 
 
3.25 Transitional fruit and vegetables payments (tomatoes) 
 
 As a consequence of the 2007 reform of the sector, Member States may retain, from 1 November 2007 until 31 December 2011, a coupled payment up to 50% of the processing aids for 
tomatoes that were eligible under the aid scheme set out in Regulation (EC) 2201/96. New Member 
States had the possibility to exclude this payment from SAPS. 
 
The component of national ceilings corre sponding to tomatoes is as follows: 
Member State Amount (EUR million per calendar year) 
Bulgaria  5.394 
Czech Republic  0.414 
Greece  35.733 
Spain  56.233 
France  8.033 
Italy  183.967 
Cyprus  0.274 
Malta  0.932 
Hungary  4.512 
Romania  1.738 
Poland  6.715 
Portugal  33.333 
Slovakia  1.018 
 
3.26 Transitional fruit and vegetables p ayments (other products than tomatoes) 
  As a result of the 2007 reform of the sector, Member States may retain, from 
1 November 2007 until 31 December 2010, up to 100%  of the component of national ceilings 
corresponding to certain fruit and vegetable crops  other than annual crops which are supplied for 
processing and were eligible under the aid schemes  set out in Regulations (EC) 2201/96 and (EC) 
2202/96; and from 1 January 2011 to 31 December 2012 they may retain up to 75%. Within the limit of a ceiling, the Member States can make, on a yearly  basis, additional payments for fresh figs, fresh 
citrus fruits, table grapes, pears, peaches and nectarines and "d'Ente" plums. 
  The component of national ceilings correspondi ng to fruit and vegetable crops other than 
annual crops is as follows: 
  G/SCM/N/220/EEC 
 Page 43 
 
 
  Member State Amount (EUR million per calendar year) 
Bulgaria 0.851 
Czech Republic 0.063 
Greece 153.833 
Spain 110.633 
France 44.033 
Italy 131.700 
Cyprus in 2009 4.856 
In 2010 4.919 
In 2011 4.982 
In 2012 5.045 
Hungary 0.244 
Romania  0.025 
Portugal 2.900 
Slovakia 0.007 
 
3.27 Separate fruit and vegetable paym ent for New Member States applying SAPS 
 
 Countries applying the Single Area Payment Sche me (SAPS, see also the section on direct 
aids in this notification) can introduce a decoupl ed payment to producers who historically produced 
fruit and vegetables. The Separate Fruit and Vege tables Payment is granted within limits of the 
component of the national ceiling referred to in Article 40 of Regulation 73/2009 corresponding to 
fruit and vegetables.  
 
3.28 Transitional soft fruit payment 
 
 To allow producers of strawberries and r aspberries for processing to adapt to market 
circumstances, they receive a transitional direct payment worth €230 per hectare for the period ending 
on 31 December 2011 for a set number of hectares. Me mber states may pay a national aid so that the 
total shall not exceed €400/hectare. 
 
3.29 POSEI  
 The legal basis  for this expenditure is Regulation 247/2006. Objective factors arising as a 
result of insularity and remoteness of certain regions of the EU impose constraints on economic 
operators and producers in these outermost regions that severely handicap their activities. Therefore 
appropriate specific supply measures to guarantee s upply and to compensate for the additional costs 
arising from their remoteness, insularity and distant location are applied. 
 
D. E
UROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD) 
1. Title of the programme 
 
 Common Agricultural Policy: Rural Development ("Second Pillar"). 
  2. Period covered by the notification 
  1 January 2009 - 31 December 2010.  G/SCM/N/220/EEC 
Page 44 
 
 
  3. Policy objective and/or purpose of the programme 
 
 Contribute to the achievement of the Common Agricultural Policy's objectives as laid down in the Treaty on the Functioning of the European Un ion, in particular Title III of Part III. Rural 
development policy should also take into account  the general objectives for economic and social 
cohesion policy set out in the Treaty and contribute  to their achievement, while integrating other 
major policy priorities as spelled out in the c onclusions of the Lisbon and Göteborg European 
Councils for competitiveness and sustainable development.  
4. Background and authority for the programme 
 
 Council Regulation 74/2009 amending Regula tion 1698/2005, as well as Regulations 
1290/2005 and 378/2007. 
 5. Form of assistance granted – Grants from EU budget 
 
Rural development programmes co-financed by  Member States and the EU budget.   
 
6. To whom and how the assistance is provided 
 
 The aid is co-financed with the Member  States and implemented through multi-annual 
programmes based on the aims of the EAFRD. The Member States are responsible for the 
implementation of the programme and the selection of individual projects.   
7. Total expenditure under the programme 
  The table below shows the amounts involved (payment appropriations in million € for each 
financial instrument).   
 
Expenditure (payments) for Rural Development (million EUR) 
Financial instrument 2008 2009 2010 
EAFRD 2007-2013 8,538.8 8,209.4 11,116.2 
EAGGF Guarantee Section 
completion of programs 2000-
2006 -14.1  
-13.3  
-7.1 
EAGGF Guidance Section 
completion of earlier programs 1,982.5  
468.4  
168.3 
Transitional instrument for New 
Member States Completion of 
2004-2006 programs 14.1  
67.2  
199.3 
Other 0.0 0.0 0.0 
Total 10,521.3 8,731.7 11,483.8 
 
8. Duration of the programme 
 
 2007-2013.  
 
9. Trade effects 
 
 No, or at most minimal, trade distorting effects. 
  G/SCM/N/220/EEC 
 Page 45 
 
 
  E. MEASURES FINANCED BY THE EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT 
("SECOND PILLAR " OF THE CAP) 
1. Policy framework 
 The European Union has an active rural development polic y because this helps achieve 
valuable goals for the countryside and for the peopl e who live and work there. The EU's rural areas 
are a vital part of its physical make-up and its identi ty. More than 91% of the territory of the EU is 
"rural", and this area is home to more than 56% of the EU's population. Many of these rural areas face 
significant challenges. Average income per head is lower in rural regions than in towns and cities, 
while the skills base is narrower and the services sect or is less developed. Also, caring for the rural 
environment often carries a financial cost. The Eu rope 2020 Strategy and the Göteborg Strategy for 
sustainable development are just as relevant to the countryside as to the towns and cities. The EU's 
rural development policy is all a bout meeting the challenges faced by rural areas, and unlocking their 
potential. 
  Theoretically, individual EU Member States could decide and operate completely 
independent rural development polic ies. However, this approach would work poorly in practice. Not 
all countries in the EU would be able to afford th e policy which they needed. Moreover, many of the 
issues addressed through rural development policy do not divide up neatly at national or regional 
boundaries, but affect people further (for example pollution crosses borders all too easily; and more 
generally, environmental sustainability has become a European and international concern). Also, rural 
development policy has links to a number of other policies set at EU level. Therefore, the EU has a 
common rural development policy, which nonetheless pl aces considerable control in the hands of 
individual Member States and regions. The policy is funded partly from the central EU budget and 
partly from individual Member St ates' national or regional budgets. 
 
 The essential rules governing rural development policy for the period 2007 to 2013, as well as 
the policy measures available to Member States a nd regions, are set out in Council Regulation 
1698/2005 amended by Regulation 74/2009. Under th is Regulation, rural development policy for 
2007 to 2013 is focused on three themes  (known as "thematic axes"). These are: 
 
 improving the competitiveness of the agricultural and forestry sector; 
 improving the environment and the countryside; 
 improving the quality of life in rural areas a nd encouraging diversification of the rural 
economy.  
 
 To help ensure a balanced approach to polic y, Member States and regions are obliged to 
spread their rural development funding between all three of these thematic axes. A further 
requirement is that some of the funding must support projects based on experience with the Leader 
Community Initiatives. The "Leader approach" to rural development involves highly individual 
projects designed and executed by local partnerships  to address specific local problems. As before 
2007, every Member State (or region, in cases where powers are delegated to regional level) must set out a rural development programme, which specifies what funding will be spent on which measures in 
the period 2007 to 2013. A new feature for 2007 to 2013 is a greater emphasis on coherent strategy 
for rural development across the EU as a whole. Th is is being achieved through the use of National 
Strategy Plans which must be based on EU Strate gic Guidelines. This approach should help to: 
 
 identify the areas where the use of EU suppor t for rural development adds the most 
value at EU level; 
 make the link with the main EU prioriti es (for example, those set out under the 
Lisbon and Göteborg agendas); G/SCM/N/220/EEC 
Page 46 
 
 
   ensure consistency with other EU policies,  in particular those for economic cohesion 
and the environment; 
 assist the implementation of the new market-oriented CAP and the necessary 
restructuring it will entail in the old and new Member States.  
 2. Rural development measures 
 Council Regulations 1698/2005 of 20 Septem ber 2005 (OJ L277 of 21.10.2005) as amended 
by Regulation 74/2009 of 19 January 2009 (OJ L30 of  31.1.2009) constitutes the legal basis for the 
Rural Development measures summarised in  section E.2 of this notification. 
 2.1 Axis 1: Improving competit iveness for farming and forestry 
 
 Vocational training and information actions, including diffusion of scientific 
knowledge and innovative practi ces, for persons engaged in the agricultural, food and 
forestry sectors. Support does not include courses of instruction or training which 
form part of normal programmes or systems of agricultural and forestry education at secondary or higher levels. 
  
 Setting up of young farmers. Support is gran ted to persons who are less than 40 years 
of age and are setting up for the first time on an agricultural holding as head of the 
holding. They must possess adequate occ upational skills and competence and submit 
a business plan for the development of their farming activities. The support shall be granted up to the maximum amount laid down in the Annex. 
 
 Early retirement of farmers and farm work ers. Support is granted to farmers who 
decide to stop their agricultural activity fo r the purpose of transferring the holdings to 
other farmers and to farm workers who decide  to stop all farm work definitively upon 
the transfer of the holding. The transferor shall not be less than 55 years old but not 
yet of normal retirement age at the time of transfer or not more than 10 years younger 
than the normal retirement age. He or sh e must stop all commercial farming activity 
definitively and have practiced farming for the 10 years preceding transfer. The total duration of early retirement support shall not  exceed 15 years for the transferor and 
for the farm worker. It shall not go beyond the 70th birthday of the transferor and the 
normal retirement age of the farm worker . The support shall be granted up to the 
maximum amount. 
 
 Use of advisory services by farmers and forest holders. Support is granted to help 
farmers and forest holders to meet costs arising from the use of advisory services for 
the improvement of the overall performance of their holding. As a minimum the 
advisory service to farmers shall cover th e statutory management requirements and 
the good agricultural and environmental cond itions provided for in Articles 5 and 6 of 
and in Annexes II and III to Regulation (EC) 73/2009 and the occupational safety 
standards based on EU legislation. 
 
 Setting up of farm management, farm relief and farm advisory services, as well as of 
forestry advisory services. Support for the use of advisory services shall be limited to 
80% of the cost or a maximum of 1500 €. Support for setting up of management, 
relief and advisory services is granted in or der to cover costs arising from the setting 
up of farm management, farm relief and farm advisory services as well as forestry advisory services and shall be digressive over a maximum period of five years from 
setting up.  G/SCM/N/220/EEC 
 Page 47 
 
 
   
 Modernisation of agricultural holdings. Support for modernisation of agricultural 
holdings is granted for tangible and/or intangible investments which improve the 
overall performance of the agricultural holding and respect the EU standards 
applicable to the investment concerned. Where investments are made in order to 
comply with EU standards, support may be  granted only to those which are made in 
order to comply with newly introduced EU standards. In that case, a period of grace, 
not exceeding 36 months from the date on wh ich the standard becomes mandatory for 
the agricultural holding, may be provided to meet that standard. In the case of young farmers receiving setting up support, the m odernization support may be granted for 
investments to comply with existing EU sta ndards, when identified in a business plan. 
The period of grace within which the standard needs to be met, may not exceed 36 months from the date of setting up. Suppor t is limited to 40-75% depending on the 
area where the farm is located. 
 
 Adding value to agricultural and forestry  products. Support is granted for tangible 
and/or intangible investments which improve the overall performance of the 
enterprise and which concern the processing and/or marketing of products covered by 
Annex I to the Treaty, except fishery products, and of forestry products and/or the 
development of new products, processes and technologies linked to products covered 
by Annex I to the Treaty, except fishery pro ducts, and to forestry products and which  
respect the EU standards applicable to the investment concerned. Support is limited to 
the maximum rate of 40-75% depending on the area where the farm is located. 
 
 Cooperation for development of new pr oducts, processes and technologies in the 
agriculture and food sector and in the forestry sector. Support is granted to promote 
the cooperation between primary producers in agriculture and forestry, the processing industry and/or third parties. It shall contribute to cover costs incurred for the 
cooperation. 
 
 Improving and developing infrastructure relate d to the development and adaptation of 
agriculture and forestry . Support may cove r notably operations related to access to 
farm and forest land, land consolidatio n and improvement, energy supply and water 
management. 
 
 Helping farmers to adapt to demanding st andards based on EU legislation. Support 
contributes partly to costs incurred and inco me foregone caused to farmers who have 
to apply standards in the fields of the e nvironmental protection, public health, animal 
and plant health, animal welfare and occupational safety. These standards must be 
newly introduced in national legislati on implementing EU law and impose new 
obligations or restrictions to farming pr actice which have a significant impact on 
typical farm operating costs and concern a significant number of farmers. The support 
is granted as a flat-rate, temporary and digressive aid on an annual basis, for a 
maximum duration of five years from the da te the standard becomes mandatory in 
accordance with EU legislation. Support shall be limited to a maximum of 10,000 € 
per holding. 
 
 Supporting farmers who participate in food quality schemes. Support covers 
agricultural products only intended for human  consumption and is only for EU food 
quality schemes, or for those recognized by  the Member States which comply with 
precise criteria. Schemes, whose sole purpose is to provide a higher level of control 
of respect of obligatory standards under EU or  national law, shall not be eligible for G/SCM/N/220/EEC 
Page 48 
 
 
  support. The support is granted as an annua l incentive payment whose level shall be 
determined according to the level of the fixed costs arising from participation in 
supported schemes, for a maximum duration of five years. The support is limited to a 
maximum amount 3,000 € per holding. 
 
 Supporting producer groups for informati on and promotion activities for products 
under food quality schemes. Support concerns  products covered by the support of the 
quality schemes mentioned above. It shall be  limited to a maximum of 70% of the 
cost. 
 
 Transitional measures for Bulgaria, the Cz ech Republic, Estonia, Cyprus, Latvia, 
Lithuania, Hungary, Malta, Poland, Romani a, Slovenia and Slovakia concerning:  
 
o supporting semi-subsistence agricultural holdings undergoing restructuring. 
Support is provided to agricultural holdings which produce primarily for their own 
consumption and also market a proportio n of their output (semi-subsistence 
agricultural holdings) shall be granted to farmers who submit a business plan. The 
support is paid up to a maximum of 1,500 € per holding per year for a maximum of five years. 
o supporting setting up of producer groups. Suppor t is granted in order to facilitate 
the setting up and administrative operation of producer groups for the purposes of 
firstly adapting the production and output of producers who are members of such 
groups to market requirements. Secondly it is granted for the purpose of jointly 
placing goods on the market, including preparation for sale, centralisation of sales and supply to bulk buyers and thirdly for establishing common rules on production 
information, with particular regard to  harvesting and availability. The support can 
be granted as a flat-rate aid in annual in stalments for the first five years following 
the date on which the producer group was re cognised. It shall be calculated on the 
basis of the group's annual marketed produc tion, up to the ceilings of 100,000 € in 
the first year. The support shall be grante d to producer groups which are officially 
recognised by the Member State's competent authority by 31 December 2013. 
 
2.2 Axis 2: environment and countryside 
 
 Natural handicap payments to farmers in  mountain areas and other than mountain 
areas. Payments compensate for farmers' additional costs and income forgone related 
to the handicap for agricultural producti on in the area concerned. Payments are 
granted to farmers who undertake to pursue their farming activity in areas designated 
for at least five years from the first payment. Payments are fixed between minimum 
25 € and maximum 250 € per hectare.  
 
 Natura 2000 payments and payments linke d to Directive 2000/60/EC. Support is 
granted annually and per hectare of UAA to farmers in order to compensate for costs 
incurred and income foregone resulting fro m disadvantages in the areas concerned 
related to the implementation of Dir ectives 79/409/EEC, 92/43/EEC and 2000/60/EC. 
Support is limited to the maximum amount of 500 € per hectare. 
 
 Agri-environment payments. Member St ates must make the support available 
throughout their territories, in accordance with their specific needs. Agri-environment 
payments are granted to farmers who ma ke on a voluntary basis agri-environmental 
commitments. Where duly justified to achieve environmental objectives, agri-
environment payments may be granted to  other land managers. Agri-environment  G/SCM/N/220/EEC 
 Page 49 
 
 
  payments cover only those commitments going beyond the relevant mandatory 
standards established pursuant to Articles 5 and 6 of and in Annexes II and III to 
Regulation (EC) 73/2009 as well as minimum requirements for fertiliser and plant protection product use and other relevant  mandatory requirements established by 
national legislation and identified in  the programme. The commitments are 
undertaken as a general rule for a period betw een five and seven years. The payments 
are granted annually and cover additional costs and income foregone resulting from 
the commitments made. Where necessary, they may cover also transaction cost. Where appropriate, the beneficiaries may be selected on the basis of calls for tender, 
applying criteria of economic and environmenta l efficiency. Support is limited to the 
maximum amounts between 200 € per Livestock Unit and 450-900 € per hectare. Support may be provided for the conservation of genetic resources in agriculture for 
operations not covered by the provi sions under paragraphs 1 to 4. 
 
 First afforestation of agricultural land. Support covers only one or more of (a) 
establishment costs; (b) an annual premium pe r hectare afforested to contribute to 
covering maintenance costs for a maximum of  five years and (c) an annual premium 
per hectare to contribute to covering loss of income resulting from afforestation for a 
maximum of 15 years for farmers or associa tions thereof who worked the land before 
its afforestation or for any other natural person or private law body. Support for the 
afforestation of agricultural land owned by public authorities covers only the cost of 
establishment. Support to farmers or other natural persons and private law bodies is 
limited a maximum of 700 € per hectare  
 Animal welfare payments granted to farmers who make on a voluntary basis animal 
welfare commitments. They cover only t hose commitments going beyond the relevant 
mandatory standards established pursuant to Article 5 of and Annex II to Regulation 
(EC) No 73/2009 and other relevant manda tory requirements established by national 
legislation and identified in the programme. The commitments are undertaken as a 
general rule for a period between five and seven years. Where necessary and justified, 
a longer period shall be determined according to the procedure referred to in Article 
90(2) for particular types of commitments . The payments cover additional costs and 
income foregone resulting from the commi tment made. Where necessary, they may 
cover also transaction cost. 
 
 Support for non-productive investments. Support provided is granted for (a) 
investments linked to the achievement of  commitments undertaken pursuant to the 
measure provided for agri-environmental payments or objectives and (b) on-farm 
investments which enhance the public amenity value of a Natura 2000 area or other 
high nature value areas to be defined in the programme. 
 
2.3 Axis 3: Improving quality of  life in rural areas and diversi fication of the rural economy 
 
 Support for the creation and development of  micro-enterprises with a view to 
promoting entrepreneurship and developing the economic fabric. 
  
 Basic services for the economy and rural population. The support covers the setting 
up of basic services, including cultural and leisure activities, concerning a village or 
group of villages, and related small-scale infrastructure. 
 
 Conservation and upgrading of the rural her itage. The support covers the drawing-up 
of protection and management plans relati ng to Natura 2000 sites and other places of G/SCM/N/220/EEC 
Page 50 
 
 
  high natural value, environmental awareness actions and investments associated with 
maintenance, restoration and upgrading of the natural heritage and with the 
development of high natural value sites. It also covers support for studies and investments associated with maintenance, restoration and upgrading of the cultural 
heritage such as the cultural features of villages and the rural landscape. 
 
 Training and information measure for economic  actors operating in the fields covered 
by axis 3. Support does not include courses of instruction or training which form part 
of normal education programmes or sy stems at secondary or higher levels. 
 2.4 Leader axis 
 
The support granted under the Leader axis shall be for: 
 
 Implementing local development strategies with a view to achieving the objectives of 
one or more of the three other axes.    
 Implementing cooperation projects. 
 The support is granted to inter-territorial or  transnational cooperation projects. "Inter-
territorial cooperation" means cooperation within a Member State. "Transnational 
cooperation" means cooperation between terr itories in several Member States and 
with territories in third countries. Only e xpenditure relating to the territories within 
the EU shall be eligible for support. 
 Running local action groups, acquiring skills  and animating through studies, training 
and promotional events. 
 
F. SAPARD/IPARD 
1. Title of the programme 
 
SAPARD, the Special Accession Programme fo r Agriculture and Rural Development. 
  
2. Period covered by the notification 
 
1 January 2009 - 31 December 2010. 
 3. Policy objective and/or purpose of the programme 
  Establish a framework for EU support for su stainable agriculture and sustainable rural 
development for the pre-accession period for the ei ght new Member States, Czech Republic, Estonia, 
Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, which joined the European Union on 
1 May 2004, for Bulgaria and Romania, which jo ined on 1 January 2007 as well as for the Candidate 
Country Croatia. 
 
4. Background and authority for the programme 
  Council Regulation (EC) 1268/1999 of 21 J une 1999 on EU support for pre-accession 
measures for agriculture and rural development in  the applicant countries of Central and Eastern 
Europe in the pre-accession period. 
 5. Form of assistance granted – Grants from EU budget 
  G/SCM/N/220/EEC 
 Page 51 
 
 
   SAPARD operational programmes co-finan ced by the EU budget and the SAPARD 
beneficiary countries. 
 6. To whom and how the assistance is provided 
  The aid is co-financed by the European Commi ssion together with the SAPARD beneficiary 
countries and implemented th rough multi-annual operational programmes approved by the 
Commission based on the aims of the SAPARD instrument. By means of decentralised management the implementation of the programmes in terms of  selection, approval, controls and financial 
execution of the individual projects, is delegated to  the SAPARD beneficiary countries. Aid to final 
beneficiaries is normally paid in the form of grants.  
7. Total expenditure under the programme  
 
Expenditure for pre-a ccession (million EUR) 
Financial instrument 2008 2009 2010 
Sapard 145 254.1     0 
Ipard    0       0 14.4 
Other   -   -   - 
Total 145 254.1 14.4 
 
8. Duration of the programme 
 
 SAPARD covers the period 2000 to 2006. Fo r the programmes of the eight new Member 
States annual commitments were made for the years 2000 to 2003. Annual commitments for the 
programmes of Bulgaria and Romania were made for the years 2000 to 2006. Croatia had a single 
commitment for the year 2006. No new commitments were made after 2006. 
 
 The programmes of the eight new Member States were closed by means of payment of the final balance of the aid made in the years 2006 to 2008. The final payment applications for the 
programmes of Bulgaria, Romania a nd Croatia were received in 2009. 
 9. Trade effects   
  No, or at most minimal, trade distorting effects.  
G. M
EASURES FINANCED BY SAPARD/IPARD 
1. The Sapard pre-accession instrument — Comp letion of the programme (2000 to 2006)  
 In general the measures under SAPARD are, in  terms of content and objectives, comparable 
to those of the European Agricultural Fund for Ru ral Development (EAFRD), with the aim to create 
structures capable of applying the aquis communautaire  upon accession. 
 
 The implementation of the measures and the realisation of projects under the SAPARD programmes of the beneficiary countries contribute to  the achievement of the objectives, in particular, 
to the attainment of EU standards and the sustai nable economic development and the creation of job 
opportunities in rural areas.  
 The main measures of the programmes are 'Invest ments in agricultural holdings", Investments 
improving processing and marketing of agricultural a nd fishery products", "Rural infrastructure" and 
"Diversification of economic activities". 
 G/SCM/N/220/EEC 
Page 52 
 
 
  2. Instrument for Pre-accession Assistance for Rural Development (IPARD) 
 
 Legal basis: Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assist ance (IPA), (OJ L 210, 31.7.2006) 
 
 IPA is intended to cover the EU assistan ce by means of operational programmes to the 
candidate and potential candidate countries in progre ssive alignment with the standards and policies 
of the European Union, including where appropriate the acquis communautaire , with a view to 
membership. 
 
 The rural development component IPARD shall support countries in their preparation for the 
implementation and management of the common agricultu ral policy. In particular it shall contribute to 
the sustainability of the agricultural sector and ru ral development and to the preparation of the 
candidate countries for the implementation of EU  structures and post-accession EU-funded rural 
development programmes. 
 
V. INDUSTRY 
A. C
OMMUNITY FRAMEWORK PROGRAMMES IN THE FIELD OF RESEARCH  
1.  Title of the subsidy programme 
 
 Sixth Framework programme 
 
 - the sixth framework programme of the European Community for research, 
technological development and demons tration activities (2002-2006), and 
 
 - the sixth framework programme of the European Atomic Energy Community 
(EURATOM) for research and training activities (2002-2006). 
 2.  Period covered 
  Calendar years of 2005 and 2006.  
3. Policy objective and/or purpose of the programme 
 
 Financial participation in Community rese arch and technological development (RTD) 
activities during the period 2005-2006 is provided through the two above-mentioned framework 
programmes.  
 The legal bases of these programmes are, respectively, Article 166 of the EU Treaty and 
Article 7 of the Treaty establishing the European Atomic Energy Community. 
 
 The sixth framework programme of the Europ ean Community is aimed at strengthening the 
scientific and technological bases of Community industry, encouraging the development of its 
competitiveness and contributing to the implementation of the other Community policies under the 
Treaty.  These objectives and the activities to be undertaken are stated in the Treaty and further 
implemented through the Decision adopting this  framework programme (Decision N° 1513/2002/EC 
of 27 June 2002
2). 
 
                                                      
2 OJ L 232, 29/8/2002, p. 1.  G/SCM/N/220/EEC 
 Page 53 
 
 
  4. Background and authority for the subsidy 
 
 The framework programme of the European Atom ic Energy Community has two main parts:  
nuclear fission and controlled thermonuclear fusi on.  The objectives and activities to be undertaken 
are set out in the Decision adopting this framewo rk programme (2002/668/Euratom of 3 June 20023). 
 
 The activities under the two framework programmes relate to fundamental  research, industrial 
research or pre-competitive development.  Fi nancing of product deve lopment is excluded. 
 
 The arrangements for implementing the two fr amework programmes are essentially the same 
and are therefore described together in the following paragraph.  
5. Form of subsidy 
 
 The framework programmes are implemented through specific programmes, which are the 
subject of Council decisions.4 
  Community support to RTD activities is provided in the form of financing ("grants" within 
the meaning of Article 25.3 of the WTO Agreem ent on Subsidies and Countervailing Measures) 
granted to projects following, as a general rule , an invitation for proposals and an evaluation 
procedure with independent e xperts and selection procedure. 
 
6. To whom and how the subsidy is provided 
 
 Research projects are carried out primarily by participants established within the Community.  
Legal entities established in a country that has signed an association agreement (associated state) with 
the Community may participate in a project and receive Community funding from the sixth 
framework programme on the same grounds as tho se established in Member States.  Legal entities 
established in countries targeted by the intern ational cooperation activities of the framework 
programme may also participate and receive f unding under certain sixt h framework programme 
research projects.  Legal entities established in c ountries that have signed a scientific and technical 
cooperation agreement with the Community may par ticipate in sixth framework programme research 
projects.  Legal entities established in any other third country may participate in sixth framework 
programme research projects.  Funding for legal en tities in the latter two categories may be provided 
if provision is made for this or if it is essential for carrying out the project. 
 
 Research projects must include the participa tion of at least three independent legal entities 
established in three different Member States or associ ated states of which two must be Member States 
or associated candidate countries.  Partnerships us ually include universities, research organisations 
and industry.  
 The European Commission is responsible fo r the implementation of the programmes.  
Contracts concluded with the Commission govern th e rights and obligations of each partner (see 
http://europa.eu.int/comm/research/f p6/model-contract/index_en.html). 
 
                                                      
3 OJ L 232, 29/8/2002, p. 34. 
4 All these are published in the OJ L 294 of 29/10/2002. G/SCM/N/220/EEC 
Page 54 
 
 
  7. Amount and duration of subsidy 
 
2007-2010 Total amounts 
(in millions of Euros) 
Sixth framework programme of the European Community for 
research, technological development and demonstration activities 846 
Sixth framework programme of the European Atomic Energy 
Community (EURATOM) 0 
Total 846 
 
8. Duration of the subsidy 
  The programme lasts from 2002 until 2006. 
 
9. Effects on trade 
 
 The sixth RTD framework programmes have no di rect impact on trade.  As a general rule, 
further work is always necessary for the results of a RTD project to lead to a commercially exploitable 
process or product. 
 
 Furthermore, access to the r esults can be shared among part ners and information may be 
made more widely available under certain conditions, which serves th e public interest.  One of the 
main benefits lies in establishing links among resear ch community partners, within Europe but also 
with non-EU countries.  
 The economic impact of industrially oriented  programmes can be assess ed only several years 
after the completion of the projects because further i nvestment is required after the end of the research 
projects to develop any competitive applications. 
 
1. Title of the subsidy programme 
 
 Seventh Framework Programmes 
 
 - the Seventh Framework Programme of the European Community for research, 
technological development and demons tration activities (2007-2013), and 
 
 - the Seventh Framework Programme of the European Atomic Energy Community 
(EURATOM) for research and training activities (2007-2011). 
 
 The arrangements for implementing the two fr amework programmes are essentially the same 
and are therefore described together in the following paragraphs.  
2. Period covered 
 
 Calendar years of 2009 and 2010. 
 
3. Policy objective 
 
 Financial participation in EU  research and technological development (RTD) activities during 
the period 2009 and 2010 is provided through th e two above-mentioned framework programmes. 
 
 The seventh framework programme of the Eur opean Union is aimed at strengthening the 
scientific and technological bases of Community industry, encouraging the development of its  G/SCM/N/220/EEC 
 Page 55 
 
 
  competitiveness and contributing to the implementa tion of the other European Union policies under 
the Treaty.  These objectives and the activities to be undertaken are stated in the Treaty and further 
implemented through the Decision adopting this framework programme (Decision No. 1982/2006/EC 
of 18 December 20065). 
 
 The framework programme of the European Atom ic Energy Community has two main parts:  
nuclear fission and controlled thermonuclear fusi on.  The objectives and activities to be undertaken 
are set out in the decision adopting this framework programme (2006/970/Euratom of 
18 December 20026). 
 
 The activities under the two framework programmes relate to fundamental  research, industrial 
research or pre-competitive development.  Fi nancing of product deve lopment is excluded. 
 
4. Background and authority for the subsidy 
 
 The legal bases of these programmes are, resp ectively, Article 166 of the EC Treaty and 
Article 7 of the Treaty establishing the European Atomic Energy Community. 
 
 The legal framework of the framework progr ammes consists of a number of legal and 
implementing acts: 
 
 A decision by the Council on the "Framework Programme": 
  - EC:  Decision No. 1982/2006/EC of the European Parliament and of the Council of 
18 December 2006, OJ L 412, 30.12.2006, p. 1 
 
 - Euratom:  Council Decision 2006/970/Eu ratom of 18 December 2006, OJ L 400, 
30.12.2006, p. 60 
 
 Each framework programme is further impl emented by decisions by the Council adopting 
"Specific Programmes":  
 - EC:  Specific Programmes "Cooperation", "I deas", "People", "Capacities" and "Direct 
Actions by the Joint Research Centre" – Council Decisions 2006/971-975/EC of 
19 December 2007, OJ L 400, 30.12.2006, p. 86, 243, 272, 299 and 368 respectively 
 
 - Euratom:  Specific Programmes "Euratom" and "Direct Actions by the Joint Research 
Centre" – Council Decisions 2006/976 and 977/Euratom of 19 December 2006, OJ 
L 400, 30.12.2006, p. 404 and 434 
  Rules governing the implementation of the activities are contained in the "Rules for 
Participation", a regulation adopted by the Europ ean Parliament and the Council (EC) and by the 
Council alone (Euratom): 
 
 - EC:  Regulation (EC) No. 1906/2006 of the European Parliament and of the Council of 
18 December 2006, OJ L 391, 30.12.2006, p. 1 
 
 - Euratom:  Council Regulation (Eur atom) No. 1908/2006 of 19 December 2006, 
OJ L 400, 30.12.2006, p. 1 
 
                                                      
5 OJ L 412, 30.12.2006, p. 1. 
6 OJ L 400, 30.12.2006, p.1. G/SCM/N/220/EEC 
Page 56 
 
 
   Each year, annual Work Programmes are adopted  by the Commission sp ecifying the research 
topics and other conditions for the award of grants. 
  Grant agreements are concluded with the par ticipants in the projects.  The various model 
grant agreements, as well as the other documents  are available at: http://cordis.europa.eu/. 
 
5. Form of the subsidy 
 
 Community support to RTD activities is provided in  the form of grants within the meaning of 
Article 25.3 of the WTO Agreement on Subsidies and Countervailing Measures. 
 6. To whom and how the subsidy is provided 
  Research projects are carried out primarily by  participants established within the European 
Union.  Legal entities established in a country that  has signed an association agreement (associated 
country) with the European Union may participate in a project and receive EU funding from the 
Seventh Framework Programme on the same terms as those established in Member States.  Legal entities established in countries targeted by the in ternational cooperation activities of the Seventh 
Framework Programme, currently 139 countries, may pa rticipate and receive funding under in a large 
number of projects.  Legal entities established in ot her third countries may participate in Seventh 
Framework Programme research projects.  Funding for legal entities the latter may be provided if it 
foreseen in a work programme or provision is made  for it in an agreement or if it is essential for 
carrying out the project.  
 Research projects must include the participa tion of at least three independent legal entities 
established in three different Member States or associated countries. 
 
 The grant is awarded mainly on the basis of the scientific excellence to projects submitted by 
consortia of universities, research organisations and undertakings following, as a general rule, an 
invitation for proposals and an evaluation pro cedure with independent experts and selection 
procedure.  The undertakings apply in function of th eir interest in carrying out a research project on a 
specific research topic in collaboration with other partners. 
 
 The amount of the grant is typically calculated as a percentage (typically 50 per cent or 75 per 
cent) of eligible costs of the project.  Eligible costs are defined in the Rules for Participation. 
 
7. Amount of subsidy 
 
2007-2008 Total amounts granted 
(in millions of EUR) 
Seventh framework programme of the European Community for 
research, technological development and demonstration activities 11,139 
Seventh framework programme of the European Atomic Energy 
Community (EURATOM) 126 
Total 11,266 
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement. 
 
 A project typically lasts for 3-4 years and the EU funding is awarded for this period.  Subject 
to delivery of required doc uments at pre-determined deadlines, pa yments are released in instalments. 
  G/SCM/N/220/EEC 
 Page 57 
 
 
  9. Trade effects of the subsidy 
 
(a) for the three most recent years fo r which statistics are available; 
(b) for a previous representative year, which, where possible and meaningful, should be 
the latest year preceding the introduction of the subsidy or preceding the last major 
change in the subsidy. 
 The Seventh Framework Programmes have no dire ct impact on trade.  As a general rule, 
further work and considerable additional financial e fforts of the participants  are always necessary for 
the results of an RTD project to lead to a commercially exploitable process or product. 
 
 Furthermore, access to the results must be shared among partners and a  more widely 
dissemination of results is encouraged and supporte d , which serves the public interest.  One of the 
main benefits lies in establishing links among resear ch community partners, within Europe but also 
with non-EU countries.  
 The economic impact of industrially oriented  programmes can be assess ed only several years 
after the completion of the projects because further s ubstantive investment is required after the end of 
the research projects to develop any commercial applications. 
 
B. R
ESEARCH ON COAL AND STEEL  
 The Treaty establishing the European Coal and Steel Community (ECSC) expired on 
23 July 2002.  The remaining assets at the expiry of the ECSC were transferred to the European 
Community and a common Research Fund for Coal and Steel (RFCS) was created, dedicated to 
research in the coal and steel sectors.  The activ ities carried out under this Fund are exclusively 
financed by the yearly returns generated by these assets. 
 
 The Research Programme of the Research F und for Coal and Steel was established by the 
Council Decisions 2003/76/EC, 2003/77/EC , 2003/78/ EC of 1 February 2003, and 2008/376/EC of 
29 April 2008 published in the Offici al Journal of 5 February 2003 ( see OJ L 29/22, OJ L 29/25, OJ L 
29/28). This last decision has been amended  by the Council decision 2008/376/EC of 29 April 2008, 
published in the OJ L130/7 dated 20.5.2008..  
 The programme is closely co-ordinated with ot her activities, carried out either in the Member 
States or existing Community research programm es, such as the Framework Programme of the 
European Community for research, technological development and dem onstration activities.  In order 
to increase the impact of this programme, th e European Commission will encourage and promote 
co-ordination, complementarities and synergy betw een the different research programmes and support 
the exchange of information between projects fi nanced under this programme and those financed 
under the Research Framework Programme. 
  The programme related documents and the information package are available on CORDIS at:  
http://www.cordis.lu/coal-steel-rtd/home.html.  
 
 For coal and steel, the Community contributes financially in the following ways:  through 
research, pilot and demonstration (RTD) pr ojects, accompanying measures and support and 
preparatory actions. 
 G/SCM/N/220/EEC 
Page 58 
 
 
  (1) Research, Pilot and Demonstration: 
 
 Research projects are intended to cover investig ative or experimental work with the aim of 
acquiring further knowledge.  The financial contributi on of the Community is up to  60 per cent of the 
allowable costs. 
 
 Pilot projects address the construction, operati on and development of an installation or a 
significant part of an installation on an appropriate scale.  These installations should have a sufficient 
scale for use.  They should allow the investigation of potential for putting th eoretical or laboratory 
results either into practice or to increase the relia bility of the technical and economic data needed to 
progress to the demonstration stage, and in certain cases to the industrial and/or commercial stage.  
The financial contribution of the Community is  up to 50 per cent of the allowable costs. 
 
 Demonstration project:  aim at constructing and/or operating an  industrial-scale installation or 
a significant part of an industrial-scale installation.   Such projects aim to bring together all the 
technical and economic data in order to proceed with  the industrial and/or commercial exploitation of 
the technology at minimum risk.  The financial cont ribution of the Community is up to 50 per cent of 
the allowable costs. 
 
(1) Accompanying measures are designed to complement and/or co-ordinate research 
activities related to this programme. 
 
(2) Support measures:  this includes the dissemination of research results and the 
promotion of the use of knowledge gained. 
 
 It is worth noting that the results of all RFCS funded research projects are made public and 
can be acquired against a small fee by any organi sation or individual, as provided for under Article 4 
of annex III of the model contract.  This allows  for a wide and non-discriminatory dissemination of 
the research results. 
 
 Total EC support provided to coal and steel projects in the period 2009 and 2010 are:  
 Year  2009  2010 
 Support in Million of  €  51 53 
 
VI. ENERGY SECTOR 
A. EUROPEAN ENERGY RECOVERY PROGRAMME  
1. Title of the subsidy programme, if relevant, or brief descrip tion or identification of the 
subsidy:  
 European Energy Recovery Program. 
 
2. Period covered by the notification 
 The subsidies were granted in 2010 and the last payment should take place in 2016.  
 
3. Policy objective and/or purpose of the subsidy 
 The objective is to establish a financial instrument for the development of projects in the field of 
energy in the Community which, by providing a fina ncial stimulus, contribute to economic recovery, the  G/SCM/N/220/EEC 
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  security of supply and the reduction of greenhouse gas em issions. In certain case s the grant is intended 
to be used to co-finance the innov ative parts of selected projects. Th e financing shall not exceed 50% of 
the eligible costs.   
4. Background and authority for the subsidy (includi ng identification of the legislation under 
which it is granted) 
 Regulation (EC) 633/2009 of the EP and the Council of 13/07/2009 establishing a programme 
to aid economic recovery by granting Community financia l assistance to projects in the field of energy. 
 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Grant. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined). 
 Others 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation.  
 
 The financial envelope for the implementation of the European Energy Plan for Recovery for 
2009 and 2010 is 3,980,000,000 Euros allocated as follows: 
 
 Gas and electricity infrastructure projects:  2,365,000,000 Euros 
 Offshore wind energy projects:    565,000,000 Euros 
 Carbon Capture and Storage projects:   1,050,000,000 Euros  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement.  
 Duration of eligible action. 
 
B. TRANS EUROPEAN NETWORK - ENERGY (TEN-E)  PROGRAMME  
1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy:  
 The TEN-E framework , developed and shaped in the 1990's through the successive 
TEN-E Guidelines and the corresponding financing Re gulation, aims at (1) supporting the completion 
of the EU internal energy market while enc ouraging the rational production, transportation, 
distribution and use of energy resources, (2) re ducing the isolation of less-favoured and island 
regions, (3) securing and diversify the EU's energy supplies also through co-operation with third 
countries, (4) contributing to sustainable developm ent and protection of the environment (including 
inter alia a greater use of renewable energy sources and the reduction of environmental risks 
associated with the transportation of energy).  The current TEN-E policy framework includes 
electricity, gas and olefin transmission networks, but not CO2 transportation, neither oil pipeline 
infrastructure. The TEN financing Regulation adopted on 20 June 2007 sets out the conditions for 
TEN-E funding and, in particular, states that co-fi nancing can be granted for up to 50% of studies' G/SCM/N/220/EEC 
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  cost and 10% of eligible works' cost, in particular  to projects of European interest. The budget for the 
period 2007-2013 is 155 million euro (about 22 mln € per year). 
  Commission decision C(2009) 868 of 16 February 2009 establishing the 2009 annual work 
programme for grants in the field of trans-European  networks (TEN) - area of energy infrastructures 
(TEN-E). 
 
 Commission decision C(2010) 48 of 18 February 2010 establishing the 2010 annual work programme for grants in the field of trans-European  networks (TEN) - area of energy infrastructures 
(TEN-E). 
  Commission decision C(2010) 9395 of 22 December 2010 establishing the 2011 annual work 
programme for grants in the field of trans-European  networks (TEN) - area of energy infrastructures 
(TEN-E). 
 
2. Period covered by the notification  
 2009, 2010, 2011. 
 
3. Policy objective and/or purpose of the subsidy 
 The current TEN-E policy framework includ es electricity, gas and olefin transmission 
networks, but not CO2 transportation, neither oil pipeline infrastructure. The TEN financing 
Regulation adopted on 20 June 2007 sets out the cond itions for TEN-E funding and, in particular, 
states that co-financing can be granted for up to 50% of studies' cost and 10% of eligible works' cost, 
in particular to projects of European interest. 
 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)   
 TEN Financial Regulation [OJ L162 of 22.6. 2007, p.1] - REGULATI ON (EC) No 680/2007 
of the European Parliament and of the Council of  20 June 2007 laying down general rules for the 
granting of Community financial aid in the field of the trans-European transport and energy networks. 
  TEN-E Guidelines [OJ L262 of 22.9.2006, p.1] - Decision No 1364/2006/EC of the European 
Parliament and of the Council of  6 September 2006 laying down guidelines for trans-European energy 
networks and repealing Decision 96/39 1/EC and Decision No 1229/2003/EC. 
 
5. Form of the subsidy (i.e. gr ant, loan, tax concession, etc.) 
 Grant. 
 
6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined). 
 Others. 
  G/SCM/N/220/EEC 
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation.  
 Annual amounts in Work programmes: 
  
 2009 - EUR 26,048,000 
 2010 - EUR 20,760,000  2011 - EUR 24,150,000 
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement. 
 Duration of eligible action. 
 
VII. OTHER PROGRAMMES 
A. EUROPEAN FISHERIES FUND (EFF) 
1. Title of the measure 
 
 European Fisheries Fund. 
 2. Period covered by the notification 
 
2009-2010. 
 
3. Policy objectives and/or programme objectives 
  The EFF, the successor of the Financial Instrume nt for Fisheries Guidance (FIFG), exists to 
grant financial support to the EU's fisheries sector  during the period 2007-2013 to help it adapt to 
changes required in the sector. The objectives of the EFF are to: 
 
- support the Common Fisheries Policy with a view to guaranteeing the sustainable 
exploitation of aquatic resources and th e economic, environmental and social 
sustainability of the fisheries sector; 
- promote the sustainable development of inland fishing; - promote a sustainable balance between resources and the fishing capacity of the EU's 
fishing fleet; 
- strengthen the competitiveness of the operating structures and the development of 
economically viable enterprises in the fisheries sector; 
- foster the protection and enhancement of the environment and natural resources 
where related to the fisheries sector; 
- encourage sustainable development and improvement of the quality of life in areas 
with an active fishing industry; 
- promote equality between men and women in the development of the fisheries sector 
and fisheries areas. 
 To achieve these objectives the EFF target s the following priority areas (axis): 
 
- Axis 1 Adjustment of the fleet: aid for pe rmanent and/or temporary ceasing of fishing 
activities, on-board safety and working improvements, more selective gear, small-G/SCM/N/220/EEC 
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  scale coastal fisheries, socio-economic measures including early retirement and 
retraining. 
- Axis 2 Aquaculture, processing and marketi ng, inland fishing: diversification into 
new aquaculture species, environmentally -friendly aquaculture, implementation of 
animal health measures, processing and marketing of fisheries and aquaculture 
products, support for inland fishing vessels of less than 12 metres not using towed 
gear. 
- Axis 3 Measures of common interest: prot ection and developmen t of aquatic fauna 
and flora, improve services offered by fi shing ports, shelters and landing sites, 
promotion of partnerships between scientists  and professionals in the fishing sector, 
development of new marketing and prom otional campaigns, pilot projects, 
reassignment of fishing vessels for uses outside the fisheries sector. 
- Axis 4 Sustainable development of fisheri es areas: restructuring and diversification of 
economic activities, promotion of sea food, provision of small infrastructure (e.g. for tourism), restoration of production damage d by disasters, promotion inter-regional 
and trans-national cooperation, capacity building to prepare local development 
strategies, protection of natura l and architectural heritage. 
- Axis 5 Technical assistance: studies, reports, information activities and other actions 
relating to the implementation of the above measures. 
 4. Legal authority 
  Treaty establishing the European Community, in particular Articles 158, 159 and 161 thereof and Treaty on the Functioning of the European Uni on, in particular Article s 174, 175 and 177 thereof. 
Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund, 
Commission Regulation (EC) No 498/2007 of 26 March 2007 laying down de tailed rules for the 
implementation of Council Regulation (EC) No  1198/2006 on the European Fisheries Fund. 
 5. Type of aid 
  Aid for the restructuring of fishing fleets, aquaculture, processing and marketing circuits, port 
facilities, selective fishing methods, financing of local strategies in support of the sustainable 
development of fisheries areas, and socio-economic measures. 
 6. To whom and how the subsidy is provided 
  Co-financing principle and principl e of regionally diversified action. 
 
 Ship-owners, enterprises, producer organi zations, public and private bodies, professional 
organizations, cooperatives, fishermen.  
 Aid is normally in the form of grants. 
 
7. Total budget of the programme 
 
 Total budget for 2007 – 2013: 4.3 billion EUR 
 
 2009: 643 MEUR, 2010: 631 MEUR.  
8. Duration of the programme 
 
 2007 - 2013. 
  G/SCM/N/220/EEC 
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  9. Trade effects 
 
 The Community has a shortfall in fishery and aquaculture products and is a major importer of these products from non-Community countries.  The structural aid has only a very small influence on 
this situation. 
 
B. C
OMMON ORGANISATION OF MARKETS IN FISHERY AND AQUACULTURE PRODUCTS  
1. Title of the measure 
 
 Common Organisation of the Market in Fishery and Aquaculture Products. 
 2. Period covered by the notification 
  2009 - 2010.  
3. Policy objectives and/or programme objectives 
 
 The objectives of this instrument are the following: 
 
 - To promote sustainable fishing and optimum use of fish products.  - To stabilize the market. 
 - To ensure a regular supply of high-quality products. 
 - To guarantee reasonable consumer prices.  - To support fishermen's incomes. 
 
4. Legal authority 
  Treaty establishing the European Community, in particular Articles 32, 33 and 34 thereof and Treaty on the Functioning of the European Union, in particular Articles 38, 39, 40 and 43 thereof. 
Regulations (EC) No. 104/2000 and (EC)  No. 791/2007 (outermost regions). 
 5. Intervention mechanisms 
  Financial compensation, carry-over aid, auto nomous withdrawal and carry-over, private 
storage aid, compensatory payment for tuna suppl ied to industry. Compensation for the additional 
costs, resulting from the remoteness, insularity and other specific handicaps, incurred in the marketing 
of certain fishery products from certain outermost regions of the EU.  
6. To whom and how the subsidy is provided 
 
 Mechanisms implemented by producers' orga nizations. In outermost regions measures are 
implemented by the EU and the Member States concerned.  Beneficiaries: fishermen belonging to 
such organizations. In outermos t regions beneficiaries can also include ship-owners and/or 
fish-processors.  Aid is normally in the form of grants. 
 7. Total budget of the programme 
  2009: 33.5 MEUR  2010: 30.4 MEUR.  
8. Duration of the programme 
 
 Fishing years. G/SCM/N/220/EEC 
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9. Effects on trade 
 
 None in so far as the Common Organization of Markets aims at regularizing prices and not at 
artificially raising their level. The amounts paid under the programme represent less than 
0.002 per cent of the value of landed fish in the EU. 
 
__________